THE ENERGY industry is in transition. The emergence of the digital age and the need to progressively decarbonise our economies means this transition may occur more rapidly than many people realise. As it does, a major challenge facing the electricity industry is supplying secure, reliable and cost-effective energy to increasingly energy-conscious consumers who desire cleaner sources of power from a more decentralised network.
As a major electricity generator, and Australia's largest CO2 emitter, AGL understands we have a key role to play in helping our industry's orderly transformation to a carbon constrained future. 
For the record, on the subject of climate change, AGL accepts the scientific consensus that anthropogenic greenhouse gas emissions have increased global average temperatures. We support the Commonwealth government's commitment to work towards a global agreement that limits global warming to less than 2 degrees celsius above pre-industrial levels.
Greener pathway
That's why we took an industry leading position by releasing our revised Greenhouse Gas Policy earlier this year. In short, we are getting out of the CO2 emissions business. Our policy provides a pathway to a more modern and lower emitting fleet. It commits us to not extending the operating life of our existing assets and to closing all existing conventional coal-fired plants by 2050. Nor will we acquire or provide financing for new conventional coal-fired plants.
Right now, AGL is continuing to build the 53 MW solar plant at Broken Hill in NSW. This plant will join the $2 billion worth of renewable generating assets that AGL has invested in, including the 102 MW Nyngan solar plant, the largest in the southern hemisphere, which has delivered 60,000 MWh of renewable energy into the National Electricity Market since it was completed in   July.
Last year alone our renewable portfolio was responsible for the abatement of 3.4 million tonnes of greenhouse gas emissions.
Policies that have been introduced to limit GHG emissions and promote renewable energy in Australia have had neither longevity nor stability. Wholesale energy prices are low and the trading price of renewable energy certificates has been volatile. Australia's electricity generation asset mix is largely old and emissions intensive. To modernise the energy generation fleet, the industry needs market-based policy, not government subsidy or support, to facilitate the removal of barriers to exit of ageing coal-fired power stations.
Consumers expect electricity markets to be reliable, affordable and able to adapt to distributed technologies and the changing consumer preferences for greater choice and control.
Change in business
model
AGL's response to this has been to change our business model, which includes establishing a dedicated business unit to focus on new and emerging energy technologies.
This includes focusing on digital meters, which go a long way to help consumers achieve greater control over their energy consumption. New digital meters and in-home energy management systems enable people to monitor their energy use daily and adjust their energy habits to take advantage of peak and non-peak energy usage periods. By combining this technology with our energy app, for example, users can look at their current usage and then project what their bill could be at the end of the month if they continued their current usage pattern. This can help consumers in many ways, including avoiding bill shock. It's these kinds of digital products and advancements we will increasingly see as markets become more competitive in a distributed energy landscape.
Continued product innovation and falling costs will enable wider sections of the community to access distributed technologies. Earlier this year AGL was the first major retailer to introduce a solar power purchase agreement to the market where residents pay zero dollars up front to have a solar rooftop system installed.
In   May we were the first major retailer to introduce a battery to the Australian market. The 7.2 kWh battery will be able to power a home for several hours and now consumers can bundle our solar and battery offering.
Battery storage combined with solar systems is a game changer. It enables people to decide when and how they use the energy they have produced and when and if they send it back to the NEM. Throw electric vehicles into the mix with in-home charging stations and we will see the creation of significant arbitrage opportunities where our homes could become electricity exchange markets.
This energy future is now. In fact, in some networks, one in four households generate their own power with rooftop solar. And Australian markets now have some of the highest rates of solar penetration globally.
In this changing energy landscape, the one constant is the customer. By anticipating the needs of these customers, and developing products, services and offering flexibility that meets those needs, the energy industry will continue to evolve.