AGL Energy Ltd (ASX:AGK) confirmed today it has not acquired any assets in the New South Wales government's sale process for its energy retail businesses and electricity gentrader contracts.

AGL has consistently stated throughout the sale process that it would benchmark any bids for assets against the alternative of pursuing a strategy of organic growth given the strength of the AGL business in New South Wales.

AGL has also said it would only bid for assets at prices that achieved the required returns for shareholders.

"AGL's bids for assets were at prices consistent with this principle," the company said in a statement on Tuesday.

According to the integrated energy company, it already has a strong market presence in New South Wales with more than 1.1 million customer accounts.

"AGL now intends to pursue the alternative strategy of leveraging its market position, its strong brand and its operational platform to drive organic customer growth in New South Wales and deliver a superior outcome for its shareholders."

"Plans are also well advanced for the construction of new gas fired electricity generation plant in New South Wales."

Costs of approximately $13 million incurred during the bid process will be included as a significant item in the FY2011 interim results.

At 1025 AEDT, shares in AGL lost 69 cents, or 4.35 per cent, at $15.16.