Australia’s biggest electricity retailer, AGL, has rejected an “unsolicited” takeover bid by Australian tech billionaire Mike Cannon-Brookes and $A1 trillion Canadian asset manager Brookfield.
The Cannon-Brookes plan is to spend $20 billion to get AGL to net zero carbon emissions by 2035. This involves closing AGL’s Baywater and Loy Yang coal-fired power stations earlier than planned and spending on renewables to make up for any lost capacity.
News analysts cite this as a “watershed moment” for the decarbonisation of the main electricity grid in Australia.
In a nutshell, because AGL is Australia’s dirtiest electricity retailer – and the biggest, with 37 per cent market share.
Mr Cannon-Brookes and Brookfield want to transform AGL into a clean energy power generator and electricity retailer.
Their stated goal is to “help accelerate the plan so that Australia’s main grid reaches net zero emissions by 2035.”
They also want to bring down the price of electricity for consumers.
Mr Cannon-Brookes said, “Australia should have the lowest-priced energy – electricity – in the world. We have all the assets to make that happen. Renewable assets generate power at far cheaper prices than the coal assets currently do.”
By taking over AGL, Cannon-Brookes is planning to achieve – within one single business entity – a massive step change in the amount of renewable energy flowing through the Australian grid.
Mr Cannon-Brookes is co-founder of Atlassian, the Australian software company that went global including a NASDAQ listing. Cannon-Brookes is estimated to have personal wealth of around $30 billion. He is also a green philanthropist and climate change crusader.
With Brookfield, one of the world’s biggest asset management firms as takeover partner, they make a formidable team.
And they aren’t letting AGL’s bid rejection put them off.
AGL produces 8 per cent of total CO2 emissions in Australia. That’s more than every single car on the road.
According to Cannon-Brookes “It’s more than all domestic and international aviation, and if it’s a country, it’s bigger than Sweden or Ireland or New Zealand, and that would make it one of the biggest decarbonisation projects on Earth.”
The reason why AGL is such a big polluter is because it operates six of Australia’s largest coal-fired power plants – and the largest of these are:
AGL plans to close Liddell in 2023 but intends to keep operating Lou Yang Power Station A until 2045 and Bayswater Power Station until 2033.
But this isn’t good enough according to international climate experts. They say Australia (and other OECD countries) must stop burning coal for electricity by 2030 in order keep global temperature rise to no more than 1.5 degrees Celsius on pre-industrial levels.
That’s why the Cannon-Brookes takeover bid is so significant.
AGL says that the bid “materially undervalues” the company and “is not in the best interests of AGL shareholders.”
AGL shareholders were due to vote in June on a proposal to split AGL into two companies: AGL Australia and Accel Energy.
ALG’s board believes that under the “unsolicited” proposal, shareholders would lose the opportunity to realise future potential value from the proposed demerger.
Cannon-Brookes disagrees saying their bid was “a far better option… from the point of view of risk and the point of view of shareholder value.”
Currently, the main electricity grid in Australia is around 75% powered by dirty electricity and 25% renewables.
By transforming Australia’s big and dirtiest electricity generator/retailer into a clean energy generator/retailer, Cannon-Brookes will be tackling climate change from the inside.
If successful, the transformation of AGL would fast-track the transformation of the Australian electricity grid into a clean energy grid.
It will also result in low bills for consumers according to Cannon-Brookes.
“We know that renewables are the cheapest source of power generation. What you require is the ability [and] capital to make that transition and do it sensibly and rationally.
Decarbonisation is the greatest economic opportunity facing Australia says Cannon-Brookes.
“I think Australia should be really proud that we can do it in an economic way that creates jobs and drives prices down.
“It’s a very sensible thing.”
Being conscious of where electricity comes from is something all of us can do. That’s why installing solar panels and battery storage is a good idea. With a rooftop solar system, you’re reducing your reliance on grid electricity. What’s more, any surplus is going back into the grid offsetting the amount of dirty electricity required from coal-fired power stations.
Your choice of electricity retailer is important too. Naturally we all want the cheapest deal for electricity, and you’ll find that many of the green electricity retailers are extremely price competitive. The Green Electricity Guide 2022 lists the top 10 greenest electricity retailers in Australia and the dirtiest. You can learn more about it here.
Another way to cut back on grid electricity is to install modern electric systems in your home for heating and cooling , hot water etc., – and run them off your solar electricity. Not only will you save thousands of dollars on power bills, but you’ll be cutting your household’s carbon footprint as well.
Get in touch if you want greener, cheaper electricity to power your home or business. We can provide advice and quotes on any of the following:
We are available! Have a question? Text us here.
Text Us
Well, her want was granted; two months later, Vin Diesel revealed that Larson will
take part in the Fast X craziness.
whoah this weblog is wonderful i really like reading your posts.
Keep up the great work! You already know, many people are looking around for
this information, you could aid them greatly.
Here is my web-site local SEO
Parental socialization and normative expectations also differ aloong lines of social
class, race, and ethnicity.
my web-site – Job for women
Superb blog! Do you have any helpful hints for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally confused .. Any tips? Thanks!
Great article! That is the kind of information that are meant to
be shared across the web. Disgrace on the search engines for not positioning this post upper!
Come on over and seek advice from my site .
Thanks =)
Outstanding post, you have pointed out some wonderful details , I besides conceive this s a very fantastic website.
дом застройка ру
You made some decent points there. I checked on the
net to find out more about the issue and found most people will go along
with your views on this website.
What i don’t understood is if truth be told how you’re not actually a lot more smartly-appreciated than you might be right now. You’re very intelligent. You realize thus considerably in relation to this topic, produced me individually believe it from numerous various angles. Its like men and women don’t seem to be fascinated until it is one thing to accomplish with Lady gaga! Your individual stuffs outstanding. All the time care for it up!
Hey there! I’m at work surfing around your blog from my new
iphone! Just wanted to say I love reading your blog and look forward
to all your posts! Carry on the excellent work!
Its like you read my mind! You appear to know a lot about this,
like you wrote the book in it or something. I think that you
can do with some pics to drive the message home a little bit,
but other than that, this is fantastic blog. A great read. I will certainly
be back.
Awesome! Its genuinely remarkable piece of b.a.2nd year result writing, I have got much clear idea on the topic of from this piece of writing.
Terrific work! This is the kind of information that are meant to be shared around
the web. Disgrace on the seek engines for not positioning this submit higher!
Come on over and visit my site . Thanks =)
Hello there! Do you know if they make any plugins to safeguard
against hackers? I’m kinda paranoid about losing
everything I’ve worked hard on. Any suggestions?
I’ll make sure to bookmark jee mains it and return to read more of your helpful information. Thank you for the post.
Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! By the way, how can we communicate?
What’s Taking place i am new to this, I stumbled upon this I have discovered It positively helpful and it has helped me out loads.
I am hoping to give a contribution & assist other customers like its aided me.
Great job.
Hi, Neat post. There is a problem with your website in internet explorer, would check this… IE still is the market leader and a good portion of people will miss your fantastic writing because of this problem.
натяжной потолок
Good – I should certainly pronounce, impressed with your site. I had no trouble navigating through all the tabs as well as related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Nice task..
The subsequent time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I do know it was my choice to read, but I actually thought youd have one thing fascinating to say. All I hear is a bunch of whining about something that you would repair in case you werent too busy searching for attention.
You should take part in a contest for one of the best blogs on the web. I will suggest this web site!
Кровля в рассрочку в ингушетии
Very interesting info !Perfect just what I was looking for! “Being rich is having money being wealthy is having time.” by Margaret Bonnano.