AGL Transition

We will continue to run our coal-fired power stations responsibly and support our people and communities during the transition.

We believe that Australia’s energy future will be affordable and smart – delivered from renewable sources that are backed by flexible energy storage technologies which come together to power our homes, businesses and vehicles. Importantly, it will be low emissions based.

As Australia’s largest and oldest integrated electricity generator and retailer, AGL is in a unique position to contribute to this future for Australia, and make a meaningful impact on the country’s decarbonisation.

Not only do our coal and gas fired generators ensure Australia’s lights remain on, they provide the financial strength for AGL to progress the transition.

We remain committed to the established timelines for the full closure of our coal-fired power stations and our promise to tackle the challenges associated with this transition with our workforce, and in the communities where we operate.


Climate Statement

AGL recognises 3 major forces driving Australia’s energy transition: customer demand, how communities act, and how technology evolves. Our Climate Statement will shape AGL’s portfolio management, supply and technology investment, and customer offerings, and outlines 5 commitments:

Responsibly transition our energy portfolio

In 2015, AGL committed via its Greenhouse Gas Policy not to extend the life of its coal-fired power plants.

As we work toward the full closure of these plants and the Australian economy transitions toward full decarbonisation by 2050, we will continue to run our coal-fired power stations responsibly and safely to supply affordable and reliable electricity, and we will continue supplying gas to our customers.

We will support our people and local communities through change and remain flexible to how customers, community and technology shape the pace of the energy transition.

Our Approach

Our approach to the closure and rehabilitation of assets is guided by the following underlying principles:

  • Transparency: We provide stakeholders with information to enable better understanding of the issues related to closure and rehabilitation of our sites.
  • Engagement: We will undertake ongoing engagement with stakeholders to ensure a diverse range of views are considered in closure and rehabilitation plans and activities.
  • Accountability: We will publish relevant information at least annually to enable external assessment of rehabilitation activities.

In 2018, we released our Rehabilitation Report (PDF), a detailed review of the technical characteristics and costs of rehabilitating our Liddell, Bayswater and Torrens Island power stations to a state as near to pre-development condition as practicable. The report also assessed the costs of rehabilitating the AGL Loy Yang mine and power station as identified in the final closure plan agreed with the Victorian Government.

We're working with our communities on a transition that's inclusive of all. 


AGL Energy is committed to providing ongoing, transparent disclosure in relation to our approach to the progressive and final rehabilitation of assets at the end of their operational lives. AGL Energy has recently completed a review of our long-term rehabilitation obligations, in line with commitments made in the 2017 Rehabilitation Report. At the same time, the discount rate used to derive the present value of the estimated cash flows was reduced from 10% to 3%, consistent with standard accounting practice. The review resulted in an increase in the provision for environmental restoration of $1,112 million, which was reflected in AGL Energy’s financial statements for the period ended 31 December 2020.

AGL Energy currently undertakes progressive rehabilitation activities across a number of operational sites. These progressive rehabilitation activities cover AGL Energy’s obligations to:

progressively rehabilitate the parts of the Loy Yang Mine that do not impact ongoing production; manage and progressively cap ash dams and voids at AGL Macquarie; and progressively decommission gas wells that have ceased production in the upstream gas portfolio. The updated provision accounts for an increase in the scope and cost of the above  progressive rehabilitation activities. Further, additional works are now required to meet AGL Energy’s end-state compliance obligations, which have increased due to a combination of both updated regulatory requirements and the establishment of formal closure plans as some assets approach end of life. These additional works will result in an increase in the cost to deliver AGL Energy’s rehabilitation program. The key drivers of increases in the estimated costs are as follows:

an increase in the lake level, shoreline and associated mine battering for the Loy Yang Mine, in line with AGL Energy’s latest rehabilitation plan and the Latrobe Valley Regional Rehabilitation Strategy; an increase in the estimated area and restoration efforts required for both the Liddell ash dam and Ravensworth void at AGL Macquarie in line with committed rehabilitation plans; an increase in the estimated work required to decommission gas wells at both Camden and in the Surat Basin, aligning to Codes of Practice in NSW and Queensland; and inclusion of additional project management costs to align with an owner-led delivery model, ensuring that AGL Energy oversees delivery of its obligations. A more granular breakdown of the forecast costs and updated provision amount as at 30 June 2021 is provided below, for each major generation site and AGL Energy’s upstream gas portfolio. For completeness, other smaller assets in the portfolio, as well as joint venture assets, have been included as “Other”.

Provisions for environmental restorations are detailed in Note 19 to the Consolidated Financial Statements in AGL Energy’s 2021 Annual Report – insert link. Progressive rehabilitation of ash dams and mines associated with AGL Energy’s coal generation assets, as well as decommissioning and rehabilitation of gas production wells undertaken in FY21, is outlined in the ESG data centre.

Further information is also available in AGL Energy’s 2021 TCFD Report “Accelerating Our Transition”. 

AGL Macquarie Power Stations

Learn about the past, present and future of one of Australia's largest power generation sites.

Torrens Island Power Station

Delivering a safe, reliable supply of electricity into the South Australian market.

Loy Yang Mine and Power Station

Producing enough power to supply over 2 million average Australian homes every year.

Ask our Community Forum

The AGL Community Engagement Forum is a place to ask questions, provide feedback, or discuss anything about AGL’s operational sites and the communities in which we operate.

Join the conversation

Community complaints and enquiries

AGL understands that we don’t always get it right, and we want to be informed when we don’t. If you would like to provide any feedback, good or bad, or simply ask some questions, please feel free to get in touch via the following channels:

Complaints and Enquiries Hotline
Call 1800 039 600

AGL Community Complaints & Enquiries,
Locked Bag 14120 MCMC,
Melbourne VIC 8001

Learn more about how we handle general customer complaints on our complaints page.