AGL Expands Domination in Electric Vehicle Home Charging Sector, Pursuing a Future Devoid of Coal Energy
In a significant stride towards its energy transition, AGL, Australia's leading energy provider and the country's largest coal generator, has made substantial progress in its Electric Vehicle (EV) charging schemes and Virtual Power Plant (VPP) initiatives.
AGL currently boasts over 35,000 customers on its EV charging plans, with half of them being new customers. The company is capturing a disproportionate share of Australia's rapidly growing EV market. The average daily load of AGL's EV customers is shifting towards the overnight "super off-peak" period, enabling better grid orchestration and flexible demand management.
The EV Night Saver plan, particularly geared towards EV owners, has been instrumental in this shift. Up to 22 percent of AGL customers' daily load has been moved to the lower-tariff overnight window due to this plan. The plan offers three hours of free energy from 11am to 2pm, optimising both pricing and portfolio outcomes for AGL and its customers.
Regarding VPPs, AGL has more than 1.5 gigawatts of decentralised assets under orchestration, including home batteries, EV charging offers, and Virtual Power Plants (VPPs). The company's VPP allows it to briefly control home batteries during “energy events” up to 10 hours, with protections such as maintaining a 20% battery reserve. Customers receive bill credits for participation. These VPPs contribute to grid stability and enable AGL to utilise distributed energy resources efficiently.
These initiatives combined form a critical part of AGL's strategy to transition from being the biggest coal generator towards a diversified, flexible energy provider with increasing renewable and firming capacity. AGL's NPS score for EV Night Saver customers is an impressive +41, reflecting customer satisfaction with these innovative offerings.
The impacts on earnings are implied through increased customer adoption, expansion of flexible asset capacity, and realised pricing benefits from multi-asset orchestration, all supporting a stable transition with potential for higher long-term returns. Moreover, AGL's ability to manage EV charging demand and expand VPPs reduces risks on the distribution grid, offering a scalable platform for future growth.
In summary, AGL’s EV and VPP programmes are foundational to its energy transition and financial outlook, improving earnings prospects by capturing new markets and leveraging flexible distributed energy resources. The company's development pipeline has tripled to 9.6 GW, including grid-scale battery investments and pumped hydro projects, indicating strong structural growth opportunities.
[1] AGL Media Release, 12 May 2022, www.agl.com.au/about-us/media-centre [2] AGL Investor Presentation, 12 May 2022, www.agl.com.au/investors [3] AGL Media Release, 11 May 2022, www.agl.com.au/about-us/media-centre [4] AGL Investor Presentation, 12 May 2022, www.agl.com.au/investors
- AGL's strategic focus on electric vehicles (EVs) extends beyond its charging schemes, as the company also aims to integrate EVs into its Virtual Power Plant (VPP) initiatives, further diversifying its energy offerings in the technology and finance sectors.
- The growth of the electric-vehicles industry in Australia, coupled with AGL's EV Night Saver plan, creates a lifestyle shift toward sustainable and economical energy consumption, as more customers opt for EVs and flexible energy management solutions provided by AGL.
- In the quest for a sustainable energy future, AGL's EV and VPP programs are not just environmentally friendly but also promise strong financial returns, as the company embarks on a journey to transform its energy generation from coal to renewable, firming capacity, and distributed energy resources, such as cars and home batteries, in the industry and finance sectors.
