AGL positioned to catch the wind

Age
Friday 21/8/2009 Page: 5

AGL Energy says $2 billion in green-power projects have a far better chance of going ahead after the Senate passed renewable energy target legislation on Wednesday. With greater certainty about the rules, the company said an imminent boom in green investment and jobs - mainly in wind energy - was set to accelerate. The laws require retailers to obtain 20% of their power from renewable generators by 2020, and AGL is claiming "first-mover advantage" over its rivals by piling into green power.

AGL managing director Michael Fraser said AGL had already invested $2.3 billion in renewable projects, including those under construction, and the industry would spend another $25 billion to $30 billion in the next decade. "We've got another $2 billion worth of projects on our books at the moment that we haven't yet committed to, and the passing of this legislation is really going to fast-track the development of those projects," Mr Fraser said.

He said the extra projects would create at least 2000 jobs over the next five years. The country's biggest windpower generator, Infigen Energy, also said it would accelerate investment now that the legislation had passed. The company plans to triple its generating capacity to 1000 MWs in the next five years, which its managing director, Miles George, said would create about 3000 jobs in construction and 1000 jobs in operation.

AGL also reported an 11% increase in underlying profit to $378.8 million yesterday, helped by a one-third jump in earnings in its generation business. AGL declared a fully franked final dividend of 280, a share, 10 higher than the previous year, payable on September 30. Its shares fell 330, or 2.3%, to $13.98.