• AGL acquires 20% stake in Kaluza for US$100 million (AU$150 million), driving its global growth ambitions and valuing the business at US$500m
  • Cements Kaluza as the next generation platform for energy retailers as they manage the complexities of future energy systems
  • Partnership to power AGL’s transformation and reinvent customer experience – generating around US$46-60 million pre-tax annual cash savings from 2028
  • Strategic investment will enable rapid innovation of low carbon solutions for AGL’s 4 million customer services

Melbourne & London – 11 June 2024 – Kaluza, a leading global energy software business, today announced that it is expanding its cornerstone partnership with AGL Energy (AGL), one of Australia’s largest energy retailers, to drive AGL’s retail transformation so that it can bring more affordable, low carbon solutions to its customers and accelerate Australia’s transition to net zero.

Kaluza’s pioneering software platform enables energy utilities to reduce cost to serve by automating their customer operations and unlocking additional value streams through the optimisation of energy usage across millions of connected devices. The Kaluza platform will be rolled out to AGL’s 4 million customer services as part of its Retail Transformation Program and is expected to unlock around AU$70-90 million (US$46-60 million) of pre-tax cash savings per year from Financial Year 2029. The multi-year licensing agreement and investment builds on a close working partnership with AGL that began in 2021, including a joint venture which saw the successful operational and technical integration of the OVO Energy Australia customer base on the Kaluza platform with market-leading results.

The transaction will also see AGL acquire a 20% stake in Kaluza for a cash consideration of US$100 million [around AU$150Million], subject to satisfaction of customary conditions precedent. The strategic investment values Kaluza at around US$500 million, making it one of the largest energy-tech investment rounds. The investment builds on Kaluza’s proven track record of supporting retailers like OVO Energy in the UK and Australia and will support Kaluza’s strategic expansion further within Europe and into Japan and the US where utilities face similar pressures to transform their retail operations and reduce costs while adapting to the realities of managing the energy transition.

Melissa Gander, Kaluza CEO, said: “Being selected by AGL as its cornerstone partner to reimagine energy together is a significant milestone for Kaluza and a testament to the game-changing capabilities of our platform.

We are quickly establishing ourselves as the software partner of choice for energy retailers and look forward to helping drive AGL’s retail transformation and decarbonisation ambitions, while putting its customers in control.”

Stephen Fitzpatrick, OVO and Kaluza Founder, said: “This AGL deal is a major step towards Kaluza’s mission to help power a world where net zero is within everyone’s reach. Australia is ahead of the curve in tackling the intense demands on its energy system – from the most volatile energy prices to the proliferation of EVs and incorporating solar into the grid.

The AGL teams have been able to witness first-hand the transformational impact of the Kaluza platform. Today’s announcement confirms that Kaluza is best placed to help global energy companies manage these challenges – at the same time as continually improving customer experiences.”

Damien Nicks, AGL Managing Director and CEO, said: “This represents a significant milestone in our transformation journey to connect more customers to a sustainable future. Our world-class technology, enabled by Kaluza and alongside other industry partnerships, will allow us to develop a future suite of simplified products that will seamlessly integrate into the lives of our customers and improve their experience.

The technology market is changing materially with the emergence of new core utility platforms offering greater flexibility and speed, which makes it imperative to partner with industry leaders, and is why we have chosen Kaluza. The Kaluza platform will enable new product innovation at speed, whilst at the same time materially reducing operating costs for AGL’s customer business in the future.”

Kaluza will enable AGL to be the energy utility of choice for Australian consumers as they make informed decisions that will power the energy transition. The platform will enable a step change in customer experience and rapid product innovation that will empower millions of customers to affordably decarbonise. Kaluza-powered offerings launched in days are already delighting Australian consumers and delivering industry-leading satisfaction at 96% and +40 NPS, while driving a 45% reduction in cost to serve for OVO Energy Australia.

About Kaluza

Kaluza is an award-winning energy software company that is reimagining energy. Launched in 2019, in the UK by OVO Founder Stephen Fitzpatrick, it has successfully expanded internationally as a cornerstone partner of choice for energy utilities. Now with over 450 employees across 7 global hubs, Kaluza’s real-time cloud platform transforms supplier operations, reducing cost to serve and boosting customer engagement. Powered by Kaluza, suppliers can invest in innovating for tomorrow’s customers and drive decarbonisation with smart, low carbon technologies that not only reduce energy bills, but lay the foundations for a more flexible energy system. Kaluza is a B Corp-certified business. www.kaluza.com

Contact

In Australia

Rory Macpherson & Gabriel Yue

Brunswick Group

Kaluza@Brunswickgroup.com
+61 474 551 604 / +61 420 972 358

In the UK

Charles Malissard

Brunswick Group

Kaluza@Brunswickgroup.com
+44 (0) 7974 982542

About AGL

At AGL, we believe energy makes life better and are passionate about powering the way Australians live, work and move. Proudly Australian for more than 185 years, AGL supplies around 4.3 million[1] energy and telecommunications customer services. We’re committed to becoming a leading multi-product retailer, making energy and other essential services simple, fair and transparent. AGL operates Australia’s largest private electricity generation portfolio within the National Electricity Market, comprising coal and gas-fired generation, renewable energy sources such as wind, hydro and solar, batteries and other firming technology, and gas production and storage assets. We are building on our history as one of Australia’s leading private investors in renewable energy to now lead the business of transition to a low emissions, affordable and smart energy future in line with the goals of our Climate Transition Action Plan. We’ll continue to innovate in energy and other essential services to enhance the way Australians live, and to help preserve the world around us for future generations.

[1] Services to customers number is at 31 December 2023.