Cannon-Brookes lays out renewable future for AGL
MIKE Cannon-Brookes has laid out a vision for the future of AGL Energy if its demerger fails, with coal to be phased out by 2035 and green loans to customers to switch to 100 per cent renewable electricity.
The billionaire, AGL’s largest shareholder, has been criticised by the power giant for failing to share his strategy should he win a highstakes battle to stop the demerger.
Mr Cannon-Brookes has nominated 2035 for the closure of AGL’s Loy Yang A and Bayswater coal plants, five years later than the target he set during several takeover bids that were rejected by AGL’s board earlier this year.
“The energy transition will take time. We believe AGL can shut down
Bayswater and Loy Yang A by 2035 to align with the goals of the Paris Climate Accords. We want to see a safe and responsible replacement plan that ensures affordable renewable energy for all AGL’s customers,” Mr Cannon-Brookes’ Grok Ventures said in an investment memo.
The five-year delay reflects the fact it would take longer for a publicly listed company to achieve the transition than if it had been successful with its bid to take the business private, Mr Cannon-Brookes said at a press conference on Friday.
Grok also wants AGL to back “customer decarbonisation journeys” by offering financing products that help retail customers fund the capital expenditures as they convert their homes to renewable electricity
“Moving to 100 per cent electric could cost the average Australian home approximately $100,000. We believe converting this capital expenditure into operating expenditure is a challenge AGL can solve for customers.
“AGL could also offer energy management software to help customers optimise and monetise their generation, storage and connected devices, to minimise customer operating expenditure.”
The Grok camp reiterated that AGL’s board were not up to the task of finding more value for shareholders via the demerger.
“We do not believe that the current AGL board has the leadership or vision to execute on the energy transition opportunity. AGL’s board has overseen an almost 70 per cent share price decline, spent $0 on direct development of renewable generation, and lost market share to more forward-thinking retailers over the last five years,” Grok said.
“We believe AGL needs worldclass renewable operators to manage the transition and technologists to solve the behind-the-meter opportunity. Management incentives need to be realigned to deliver on the accelerated transition opportunity.”
Mr Cannon-Brookes also said former AGL Energy boss, Andy Vesey, was against the company‘s demerger after the billionaire held talks with the US businessman.
“He is broadly supportive of what we are trying to do and he does believe very much in the opportunities for these assets to go in a different direction,” Mr Cannon-Brookes said at a press conference on Friday.