Most of Australia’s electricity is produced using coal as the principal fuel. While coal is relatively economic as a fuel source, its high capital costs require consistent operation (baseload) to be economic. 

AGL has an equity investment in Loy Yang Power, one of Australia’s largest coal-fired power stations.  

Loy Yang Power

In 2004 AGL, through its foundation shareholding in the Great Energy Alliance Corporation Pty Limited (GEAC), purchased a 32.5% economic interest in Loy Yang Power, which owns Loy Yang A Power Station and its adjacent coal mine.

LYP is a 2,120 MW coal-fired base load power station located in the Latrobe Valley, Victoria and is among the lowest short run marginal cost base load generators in the National Electricity Market.
 
The Loy Yang A Power Station is the largest base load generator in Victoria and supplies around one third of Victoria's electricity requirements. Due to its fuel source and size, it is a significant emitter of greenhouse gases, however Loy Yang A is the most efficient brown coal generator in Australia, with the lowest greenhouse gas emissions per mega watt hour of electricity produced.