👉 Background: AGL Energy is one of the oldest and largest energy providers in Australia. It's nearly 200 years old and has over 4 million customers.

👉 What happened: Now, AGL has announced a $150 million investment for a 20% stake in energy-tech platform Kaluza to help manage electricity supply for its millions of customers. But Kaluza wasn't AGL's first choice.

👉 What else: It turns out AGL was actually keen to licence another energy software called Kraken. But its main competitor, Origin Energy swooped in first, as both energy providers are racing to prepare for a major influx of solar energy in personal households and Virtual Power Plants (VPPs).

What's the key learning?

💡In traditional industries, you either need to adapt swiftly to innovation or risk obsolescence. And in the energy sector, the new wave of innovation reshaping the industry is in the form of VPPs.

💡VPP’s pool energy from thousands of households or businesses with rooftop solar and batteries. When there's excess energy produced, VPPs can release it into the wholesale market when prices are high, rather than let it go to waste.

💡AGL saw this work for its rival Origin, and wanted in on some of the action. And on top of reducing reliance on coal power, AGL reckons these VPPs will deliver it pre-tax savings of between $70 million and $90 million per year.