UPDATE: AGL’s 2025 annual report has just revealed that renewables could cost Australian consumers TRIPLE the price of coal to generate electricity. This bombshell finding raises urgent questions about the future of energy costs in Australia.
In a shocking disclosure, AGL reported that coal electricity generation in the 2025 financial year cost only $15 per megawatt hour, while renewables, including storage, came in at $47 per megawatt hour. The company’s expenditure was significant: $392 million on coal versus $233 million on renewables. This stark contrast highlights a troubling trend as energy bills continue to rise.
As 2GB host Ben Fordham noted on his morning show, “This is why our energy bills keep going up. We’re shutting down coal even though it’s three times cheaper than renewables.” Fordham emphasized that AGL plans to shut down its coal-fired power stations by 2025, despite the fact that coal currently generates 80 percent of AGL’s electricity.
The report comes at a critical time as electricity generated from renewable sources has just surpassed that from coal in Australia for the first time. In September 2025, renewables produced 9.24 terawatt hours, compared to 8.8 terawatt hours from coal, as reported by Ember. This shift is echoed globally, with renewables also surpassing coal in the first half of 2025.
AGL’s report has raised alarms among experts. The Climate Council asserts that not only are renewables becoming cheaper, with wholesale prices at $74/MWh compared to $135/MWh for coal and gas, but they are also essential for reliable future energy supply.
However, the debate is heating up. NSW Premier Chris Minns has extended the life of the Eraring Power Station, which was set to close in 2025, until August 2027, amid concerns of potential rolling blackouts. “I’m not going to let the power run out in NSW,” Minns stated, emphasizing the need to keep coal operational as renewable energy struggles to meet rising demand.
As power prices continue to surge, many are questioning the government’s renewable energy strategy. Fordham pointed out the escalating costs associated with gas, stating that while coal is around $22/MWh, gas generation costs a staggering $115/MWh.
With AGL’s major coal reliance and the impending closure of coal facilities, the future of energy in Australia hangs in the balance. As the nation grapples with these revelations, consumers are left wondering how these changes will affect their electricity bills in the coming years.
This urgent report from AGL not only sheds light on the stark realities of energy generation costs but also prompts immediate discussion about the viability of renewable energy in Australia. As the energy landscape evolves, all eyes will be on policy decisions and their impact on affordability for Australian households.
Stay tuned for further updates as we monitor this developing story.
