Brace for bumps

By PHILIP HOPKINS

THE closing date for the LoyYang Apower station looks set to stay at 2035, but AGL Energy’s new chief executive expectsa “bumpy road” as the company continues its drive towards renewable energy.

Damien Nicks,who has just beenappointed CEO after being the acting chief executive for several months, will oversee the company’s plantospend $20 billion on renewable energy generation and storage as it undergoes its transformation frombeing the nation’s biggest coal generator by 2035.

Mr Nicks told the Australian Financial Review that the market should not expect any changes to the strategy agreed to last September.

“There are going to be bumps along the road. This is not going to necessarily be apurely smooth ride for the whole market,” he told The Australian. “But for us it’s about having clarity about how we deliver. We’vegot deepplans over thenextseven years to 2030. And we’ll continue to refine those plans, and then continue refining those plansout to 2035 as well.”

The strategy unveiled last September brought Loy Yang A’s closure date forward by 10 years from 2045 to 2035 after the coal giant faced growing pressure to speedupits energy transition to renewables. Grok Ventures, its biggest shareholder with more than 12 per cent and controlled by techbillionaire Mike Cannon-Brookes, had beenpushing to close Loy Yang Aby2029.

Grok was responsible last year for AGL cancelling its demerger plan to create astand-alone coal energy company. The demerger plan was backed by Mr Nicks and the AGL chair, Patricia McKenzie.

Mr Nicks plans to update major shareholders,including Grok, on how it will carry out its green strategy. Grok did not reply to queries from media on Mr Nicks’ appointment as chief executive.

The mainstream media reportedthat investors were generally happy with Mr Nicks’ appointment. Fund managerand AGL shareholder Geoff Wilson said the big question was whether Mr Nicks could bring the dynamism that the transition needed.

“Hiskey challengesare motivating his team. The agenda is there, it is just aquestion of will the energy be there to be dynamicand catalyticinchange,” he told The Australian.

Debby Blakey,chief executive at superannuation fund HESTA, said Mr Nicks provided “leadership certainty” as AGL embarksonits bigchallengeto transform its business for alow-carbon future.

“We look forward to hearing how the boardand management plan to implementits climateplan, including how the company will support impacted communities,” she told the AFR.