During FY23, AGL announced significant updates to our strategic direction and targets in September 2022 and June 2023.
AGL will play our role in Australia’s decarbonisation journey by connecting our customers to a sustainable future and transitioning our energy portfolio.
AGL is taking action to accelerate Australia’s transition to a lower carbon future. We are targeting an exit from coal-fired generation by the end of FY35, and have an ambition to supply ~12 GW of new renewable and firming capacity before 2036, with an interim target of ~5 GW by 2030. Our commitment to responsibly reshape our future energy portfolio represents one of the most significant decarbonisation initiatives in Australia.
We are progressing our plans to curate a demand-driven generation and firming portfolio to meet projected growth in electricity demand in the most cost effective and low risk manner. We also have an unwavering focus on continuing to ensure the availability, reliability and flexibility of our thermal asset fleet for the remainder of their operational lives. We are advancing our plans to repurpose our thermal generation sites into low-carbon energy hubs in the Hunter, Latrobe Valley and Torrens Island, connecting industrial partners into a circular economy at the sites. Further information on our asset transition plans, development pipeline, and energy hub progress, is available in the Assets scorecard.
We are also committed to helping our customers decarbonise the way they live, move and work. Our Customer Markets strategy focuses on three areas: strengthening our core business while supporting our customers; capturing growth in new value pools particularly those arising from decarbonisation and electrification; and leveraging technology and digital to unlock efficiency and growth through retail transformation. Through execution of this strategy we intend to be well positioned to capture the projected increase in electricity demand through electrification, as well as future population growth in major capital cities as we shift the focus of our business model from being a commodity supplier to scaling “Energy as a Service,” which includes asset orchestration, hardware provision, e-mobility solutions such as leasing and charging, decentralised energy, and asset monitoring and management. Further information is available in the Customer scorecard.
Our people are critical to our success, and we are committed to building the capabilities and culture required to deliver our strategy. We also recognise the important role of technology in unlocking growth, enhancing customer experience and strengthening our trading operations and risk management capabilities.
We are also focused on ensuring that ESG considerations are part of our decision making. During FY23, AGL’s climate strategy was released through our inaugural Climate Transition Action Plan (CTAP). As well as key decarbonisation targets across a 12-year roadmap, the CTAP includes our commitment to continue to advocate for a responsible transition that balances energy reliability and affordability with the need to decarbonise, and our commitment to work with and support our people and communities through a responsible and orderly transition. The CTAP was endorsed by shareholders at the 2022 Annual General Meeting. A summary of the progress made against our CTAP commitments over FY23 is set out in our FY23 TCFD Report.
We are also committed to embracing other aspects of AGL's ESG framework, and our ESG performance over FY23 is available in our Business Value Driver scorecards from page 19 and in our ESG Data Centre.
