AGL Starts Technology JV With U.K. Energy Supplier
(Bloomberg) -- AGL Energy Ltd, Australia’s largest electricity retailer, will launch a joint venture with Ovo Energy Ltd. to use the U.K. utility’s technology platform Kaluza.
As part of the agreement, AGL will invest in Ovo Energy Australia to adapt the Kaluza platform for its domestic market. The aim is to digitalize AGL’s services and offer customers smart products as households install more solar plants and the uptake of electric vehicles grows.
Australia has one of the highest levels of rooftop solar generation in the world and ensuring grid stability is a priority as energy supply continues to decentralize. Kaluza’s software can be used to shift device charging to times of lower demand.
Suppliers need to focus on “harnessing technology that makes zero carbon living simple and affordable for everyone,” Ovo Chief Executive Officer Stephen Fitzpatrick said. The Kaluza platform makes it “easy for the customer to engage with energy and their own carbon footprint.”
Solar installations in Australia will continue to increase, offsetting rising demand from air conditioning and electric vehicles, according to BloombergNEF. The surge of power during the day will increase the need for flexible generation to counteract that.
AGL Attempts a Rebound From Losses With Solar Acquisitions
AGL has made significant losses from renewable energy investments and is due to make a strategy announcement this week. Amid a dim outlook for electricity prices, the company last month booked an A$2.7 billion ($2 billion) impairment, with around A$1.9 billion in write downs for wind farm offtake agreements.
“We are committed to playing a leading role in developing a pathway to a modern decarbonized energy system,” said Brett Redman, chief executive officer at AGL.
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