By Ross Kelly

SYDNEY--Australian electricity generator and retailer AGL Energy Ltd. (AGK.AU) has decided to look offshore for leadership, appointing a former senior executive at AES Corp. to be its new chief executive.

Andrew Vesey, 59, most recently served as chief operating officer of AES, which operates utilities and wholesale power generators in the U.S. and Latin America.

He will replace current long-standing AGL chief Michael Fraser in February. AGL had said in May that Mr. Fraser would retire by the end of June, 2015.

Write to Ross Kelly at ross.kelly@wsj.com

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