AGL Energy has stepped up its push into green energy with a $20 million stake in a US battery maker and a new fund to develop large scale renewable projects.
The investments come just days after the company announced it will quit gas exploration and production, following the collapse in oil and gas prices.
That decision dragged AGL to a half year loss of $449 million, due to $640 million in writedowns on its NSW and Queensland gas assets and other related charges.
The energy producer and retailer said it will buy a minority stake in California's Sunverge Energy, giving it exclusive rights to sell the company's renewable storage product in Australia.
AGL, Australia's biggest owner of coal fired power stations, has also launched a fund to develop up to $3 billion of large scale renewables projects.
An initial contribution of $200 million in equity will be made to the fund, plus AGL's Nyngan and Broken Hill solar projects in NSW.
The company last year committed to closing all of its existing greenhouse gas emitting plants by 2050.
AGL also wants to become one of the largest providers of rooftop solar, energy storage and electric vehicle services by 2020, in an effort to tap the growing market.
"The Sunverge investment is just one step to enhance our capabilities so that we can meet customers' rapidly changing needs and expectations," managing director Andy Vesey said.
"We have also seen that challenges remain in deploying large scale renewables projects, and felt movement in this space is important."
AGL, which has previously built around $2 billion worth of renewable energy projects, is aiming to develop 1,000 MW of generation capacity through the new fund, and is looking to gather a number of large infrastructure funds as partners.
Indian mining giant Adani, which is developing the $16.5 billion Carmichael coal mine in central Queensland, also confirmed on Wednesday it is pursuing investment in solar generation projects in Queensland and South Australia.
AGL said its underlying profit for the six months to December 31, which excludes asset writedowns, rose 24 per cent to $375 million.
Cooler weather during the second half of calender 2015 helped boost electricity volumes by 1.1 per cent, it said.
AGL expects the second half of the financial year to be more moderate, with more normal weather conditions predicted.
Full year underlying profit is expected to be closer to the top half of AGL's guidance range between $650 million to $720 million.
Its shares were up four cents at $18.84 at 1530 AEDT.
WRITEDOWNS WEIGH ON AGL's FIRST HALF
* Net loss of $449m vs net profit of $308m
* Revenue up 8.1 pct to $5.6 bln
* Interim dividend up two cents to 32 cents
