FILE PHOTO: The logo of AGL Energy Ltd, Australia's no.2 power retailer, adorns the building of their head office in Sydney, Australia, February 8, 2017. Picture taken February 8, 2017. REUTERS/David Gray
(Reuters) -Australia's AGL Energy said on Thursday it had signed a three-year deal with energy giant BP to provide easier access to electric vehicle charging points for users in New South Wales, in a bid to switch towards green energy.
Under the deal, the company and BP Pulse, the electric vehicle charging business of the London-based firm, will initially offer customers in New South Wales discounted charging rates and ultra-fast chargers when they sign up for AGL's existing 'Electric Vehicle at-home programme'.
AGL said in a statement that the agreement to develop products and services for accessible charging points would help reduce range anxiety, a common fear among EV drivers.
Shares of the country's top power producer fell 0.8% after rising about 0.1% in early trade, while BP had ended 3.7% down on Wednesday.
AGL also said that as a part of the agreement, both parties would look to explore and collaborate on the public charging infrastructure powered by renewable energy.
BP said the agreement is in line with its strategy to roll out its network of 600 BP Pulse EV charging points across Australia by 2025.
"As we transition to a low-carbon future, this agreement will empower our customers with innovative, sustainable and cost-effective EV charging solutions," AGL Chief Customer Officer Jo Egan said.
"I think the partnership could be good for AGL by promoting its EV program but I think the financial impact will really only be felt at the margins," Morgans Financial equity research analyst Max Vickerson said.
Multiple companies looking to expand their portfolios towards sustainable energy has boosted EV demand recently.
AGL had shut down the Liddell power station, one of oldest coal-fired power stations, in April after more than half a century of operations, as it looked to convert the site into a renewable energy hub.
(Reporting by Archishma Iyer and Navya Mittal in Bengaluru; Editing by Pooja Desai and Rashmi Aich)
