Australia’s AGL Energy has agreed to divest 19.9% of its equity interest in Tilt Renewables to Queensland Investment Corporation (QIC) and a Future Fund-led consortium for AU$750 million (US$488 million).
The proceeds have been earmarked for investment in flexible, dispatchable capacity, including battery energy storage systems (BESS).
Announced this morning (10 November), the transaction represents a strategic capital recycling initiative that will enable AGL to accelerate its battery storage deployment while maintaining exposure to renewable energy generation through expanded offtake agreements with Tilt Renewables.
AGL will retain its remaining stake in Tilt following the completion of the deal, which is subject to approvals from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.
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AGL managing director Damien Nicks emphasised the transaction’s role in supporting the company’s energy transition strategy.
“The transaction demonstrates our commitment to realising value in our portfolio and recycling capital to invest in flexible, dispatchable capacity as we work towards our expanded 6GW target of new firming and renewable energy projects by FY30,” Nicks said.
The divestment coincides with expanded strategic offtake arrangements between AGL and Tilt Renewables, including 45% of generation from the Palmer Wind Farm under a 15-year agreement and 100% of output from the Waddi Wind Farm for 15 years.
These agreements secure approximately 123MW from Palmer’s 288MW capacity and 105MW from Waddi, contributing to AGL’s diversification of its renewable energy portfolio.
The AU$750 million transaction value represents a significant premium to AGL’s carrying value in Tilt of AU$321 million as of 30 June 2025. The proceeds will directly support AGL’s commitment to deploying battery storage systems as part of its broader decarbonisation strategy.
AGL has previously demonstrated its commitment to battery storage development, dedicating AU$900 million to battery storage as part of its transition to cleaner energy sources. The company has also sought federal approval for a 2000MWh battery storage system in Queensland, highlighting its focus on large-scale storage deployment across Australia.
Tilt Renewables operates a 1.9GW renewables platform across 12 assets and maintains more than 1.6GW of new projects awaiting final investment decision.
The company has been actively developing battery energy storage projects, including two 8-hour batteries submitted to South Australia’s environmental approval process and a 200MWh BESS deployment in Victoria utilizing Fluence’s full product ecosystem.
The partnership between AGL and Tilt extends beyond the current transaction, with both companies committing to underwrite new renewable energy and storage projects through power purchase agreements(PPAs).
This strategic alignment supports AGL’s position in the National Electricity Market (NEM) while providing Tilt with long-term revenue certainty for its development pipeline.
QIC and the Future Fund’s acquisition of the AGL stake positions institutional investors to participate in Australia’s renewable energy transition through Tilt’s expanding asset portfolio.
The transaction is expected to be completed in Q3 FY26, subject to regulatory approvals. The deal structure maintains AGL’s strategic partnership with Tilt while providing capital flexibility to accelerate battery storage investments across the company’s 6GW development target by 2030.
