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EnergyAustralia today announced a net profit before fair value movements of $40 million for the first half of 2026.
The result reflected stronger contributions from improved retail performance in a competitive market, alongside continued progress on flexible generation and energy storage to support the energy transition.
The interim results were announced in Hong Kong by CLP Holdings. EnergyAustralia delivered a 1H2026 EBITDAF of $376 million and operating earnings (before fair value movements) of $40 million.
Managing Director Mark Collette noted that the company navigated a highly competitive retail market while continuing to expand its flexible generation and storage capacity to support the energy transition.
“Even as competition put pressure on customer numbers, our retail business delivered a stronger result and we kept investing in the projects that will underpin a more reliable, lower-carbon energy system," said Mr Collette.
Supporting customers
EnergyAustralia continued to support customers facing cost-of-living pressures through flexible payment arrangements. Uptake of its consumer offers also grew: the Community Battery Ease plan gave eligible households access to lower-cost electricity backed by more than 20MW of partner-installed battery storage, while EV Night Boost adoption in NSW rose as customers took advantage of discounted off-peak charging rates.
In the commercial segment, the AFL signed a five-year power purchase agreement with EnergyAustralia to supply renewable energy to Marvel Stadium and AFL House in Melbourne, one of the company's highest-profile corporate partnerships to date.
Reliable generation, growing flexible capacity
The generation fleet performed reliably across the half. Output at Yallourn Power Station increased following major outage works across all four units, including a turbine replacement that returned Unit 2 to service in February. The plant remains on track for its scheduled retirement in 2028.
Mount Piper and the gas-fired portfolio maintained solid operational performance, though commercial utilisation declined as new peaking capacity and battery storage entered the market, a reflection of increased competition rather than any change in asset reliability.
Flexible and low-carbon capacity continued to expand:
- Golden Plains wind farm (Vic): 84MW of offtake contracts commenced, phase one
- Orana battery (NSW): 200MW/800MWh, now in commercial operation
- Hallett battery (SA): 50MW/245MWh, construction started; will power ~81,000 homes for up to five hours on completion in H2 next year
- Wooreen battery (Vic): 350MW/1,400MWh, in final construction phases
- Mount Piper battery (NSW): 250MW/1,000MWh, in planning
EnergyAustralia continued to progress its major development pipeline. The Environmental Impact Statement for the Lake Lyell pumped hydro project (NSW, 385MW/3,080MWh) was opened for public exhibition in March and April, with community and stakeholder submissions to inform final government determinations expected this year.
Outlook
Wholesale electricity prices in the recent period in Australia had been lower than the previous year. This is expected to persist through the remainder of the year, compressing generation margins. On the retail side, lower average tariffs from July and second-half regulatory reforms are expected to add further pressure on margins.
To strengthen the business, EnergyAustralia will continue to sharpen its competitiveness through technology transformation, disciplined cost management and the growth of its low-carbon portfolio. A key pillar of this is the partnership with Tata Consultancy Services (TCS), which has now completed its first phase covering select back-office operations. We will now move into the next phase that is focused on lifting efficiency across the business.
Planning for the future of the Yallourn site ahead of the power station’s mid-2028 retirement continues, including master planning for the proposed Yallourn Energy Security Precinct. The early-stage proposal is assessing opportunities for gas generation, large-scale battery storage and data centre development, using the site’s existing grid connections, gas infrastructure and skilled workforce to help support Victoria’s energy security after coal. Further planning, feasibility work and community consultation will follow.
Together, these initiatives are expected to deliver a leaner, more resilient cost base and a stronger platform for long-term earnings growth as the energy transition accelerates.
Looking ahead, EnergyAustralia will continue to engage constructively with government on the NEM Review, Gas Market Review and Australian data centre policy. The company believes a stable, predictable regulatory framework is critical to strengthening market resilience and supporting ongoing investment in the energy transition.
"We expect margin pressure to build in the second half but our focus remains clear, investing and delivering a competitive business with the flexible capacity portfolio that will position EnergyAustralia well for the long-term energy transition," said Mr Collette.
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