Following record demand in 2025, energy consumption is expected to grow by more than a fifth from 178 terawatt hours in 2024-25 to about 229TWh by 2034-35, according to data from the National Electricity Market operator.
After announcing a half-year statutory net profit of $94 million for the six months to December, AGL chief executive and managing director Damien Nicks said the future was looking brighter.
"There are positive indicators for the demand in the NEM, which represents a potential tailwind for electricity pricing," he said during an earnings briefing on Wednesday.
"We've seen peak demand records achieved in the NEM in 2025 as well as a continued strong long-term outlook for energy demand supported by electrification, data centres and the expected continuity of smelter operations in New South Wales."
Significant data centre-driven demand growth was expected in the coming decades, particularly in NSW, Victoria and the ACT, as the three jurisdictions jostled to get a piece of the burgeoning industry.
AGL's first-half $94 million profit result represented a 42 per cent slump from the equivalent half in 2025, after it booked a $143 million loss on the fair value of financial instruments and $116 million in significant items.
Underlying net profit also slipped to $353 million, from $373 million, while earnings before depreciation and amortisation held flat at $1.1 billion.
However, the interim result for the electricity generator and energy retailer was a solid beat on consensus market forecasts, RBC Capital Markets analyst Gordon Ramsay said.
"AGL Energy's 1H FY26 result has demonstrated strong performance across critical financial and operational metrics," he said in a research note.
"Full-year FY26 guidance has also narrowed and generally improved."
The energy giant now expects a full-year net profit after tax of between $580 million and $680 million, narrowing from $500 million to $700 million, which raised its median profit target to $630 million.
The result reflected a strong operational performance, AGL's boss said.
"Our first-half results reflect strong operational and financial momentum across the business," Mr Nicks said.
He pointed to improvements in AGL's generation portfolio, growth in customer services and higher margins, and the continued delivery of the transition of its asset base.
"The improved availability and flexibility of our generation asset portfolio, including the continued strong performance of our batteries, helped mitigate a period of low price volatility in the NEM (National Electricity Market), which was driven by milder weather and lower transmission constraints."
Investors welcomed the results, driving AGL shares more than nine per cent higher to $9.66 in afternoon trading.
The company's energy transition continued to make progress, with the 500-megawatt Tomago Battery in NSW under construction and the Liddell Battery undergoing testing, with the first 250MW expected to come online in the third quarter.
AGL also announced it would sell its telecommunications business to Aussie Broadband and enter a long-term strategic partnership with the internet provider, in a scrip deal worth $115 million in the buyer's shares.
"Today, we're announcing the divestment of our telecommunications business and a long-term strategic partnership with Aussie Broadband, with our approximately 400,000 customer services to be acquired by Aussie Broadband," Mr Nicks told shareholders.
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