Origin Energy is betting on big batteries and gas to keep the lights on as Australia's last coal-fired power stations are retired.
While commercial and industrial customers were going electric, the electricity and gas giant said on Thursday demand growth from the widespread electrification of homes was not expected to kick in until 2030 to 2040.
One of the "big three" electricity retailers in Australia, competing with AGL Energy and Energy Australia, Origin said it was making progress on building more renewable energy and storage assets.
But earnings for the Energy Markets division were lower as Origin absorbed lower wholesale prices and coal supply costs increased.
Stage one of the Eraring big battery and the Supernode project north of Brisbane would start to make a contribution in the second half of the 2026 financial year, chief executive Frank Calabria told a conference call.
Output from the aging Eraring coal-fired power station, set to keep running until 2027 under a deal struck with the NSW government, was "relatively stable".
Origin is targeting four to five gigawatts of renewables and energy storage by 2030, including the Eraring big battery and a large-scale battery alongside its gas-fired Mortlake Power Station in Victoria.
"Batteries will complement our existing gas-fired power stations," head of energy supply and operations Greg Jarvis said.
The fast-start gas peaking fleet lifted its output in the first half of the financial year, supporting variable renewable energy sources and helping to maintain a "reliable" power supply for homes and businesses.
Longer term, greater use of gas-fired electricity plants would be needed to take out more coal, Mr Jarvis said.
The company also has a portfolio of wind projects, including its priority development Yanco Delta in NSW.
A major supplier to the east coast domestic gas market, Origin reported a statutory profit of $1.017 billion for the six months to December 31, up from $995 million a year earlier.
Underlying profit rose by almost a quarter to $924 million in the six months to December 31 on improved earnings from gas and lower tax expenses.
UBS analyst Tom Allen said Origin's balance sheet was in good shape which, combined with a higher-than-expected dividend, should overwhelm any concern that capital expenditure was higher than expected.
Origin operates coal seam gas production plants as part of Australia Pacific LNG in Queensland to supply the east coast and for exporting to Asia.
Underlying earnings for the Integrated Gas division increased by a quarter to $1.251 billion on gains in LNG trading as well as higher sales volumes and commodity prices, Origin said.
The increase in sales volumes reflected the commencement of a 10-year agreement to acquire up to 350 petajoules of gas from Queensland Curtis LNG.
Australia Pacific LNG production was expected to be 670 to 690 petajoules for the financial year, with capital and operating costs of $2.7 billion to $2.9 billion.
Origin declared an interim dividend of 30 cents per share, up from 27.5 cents per share a year earlier.
