AGL welcomes changes to Renewable Energy Target scheme 

24 June 2010

AGL Energy Limited (AGL) has welcomed the passage through
the Senate of legislative changes to the operation of the Renewable Energy
Target (RET) scheme, saying the changes will provide greater investment
certainty for the renewable industry.

Under the changes, the RET scheme will be split in two, effectively creating two
separate markets: one for large-scale renewable energy projects, such as wind
farms, and one for small-scale technologies including solar PV.

AGL Managing Director Michael Fraser said the changes gave industry certainty to
make long-term investment decisions to transform the nation’s energy
infrastructure to meet the target of sourcing 20% of the nation’s electricity from
renewable sources by 2020.

Mr Fraser said: “I congratulate Climate Change Minister Penny Wong’s decisive
leadership during this difficult reform process. Her efforts to ensure the passage
of this legislation through the Senate will allow AGL to invest with confidence to
assist in meeting the 20% target. We are also grateful that the Shadow Minister
Ian Macfarlane was able to support these reforms.

“With our joint venture partner Meridian Energy, AGL now plans to fast track the
final approvals for the development of the Macarthur wind farm which, when
completed, will be one of the largest wind farms in the southern hemisphere.”

Further inquiries:

Nathan Vass, Head of Media
Direct: + 61 2 9921 2264
Mobile: + 61 (0) 405 040 133
e-mail: nvass@agl.com.au

John Hobson, Head of Investor Relations
Direct: + 61 2 9921 2789
Mobile: + 61 (0) 488 002 460
e-mail: john.hobson@agl.com.au

About AGL
AGL is Australia's largest integrated renewable energy company and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest retail energy and dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.