Yallourn Power Station Closure Inquiry Announced

Yallourn Power Station | Image via Google

Victoria’s Economy and Infrastructure Committee is to delve into the economic impacts of the early closure of Yallourn Power Station.

Last week, EnergyAustralia announced the brown coal fired clunker will retire in mid-2028 instead of 2032. Closure of the power station will see EnergyAustralia’s carbon dioxide emissions slashed by more than 60 per cent relative to today in one fell swoop.

Federal Minister for Energy and Emissions Reduction Angus Taylor wasted no time in stoking fears of Hazelwood situation – even though the two scenarios completely different beasts.

On Tuesday, Melina Bath MP raised a motion calling for the establishment of an inquiry into the economic future of Latrobe Valley, which is to consider:

• The impact the closure of Hazelwood Power Station in 2017 had on the economy and jobs of the Latrobe Valley, and economic recovery efforts to date.
• The expected economic impacts of the closure of Yallourn power station and options the State Government has to address the loss of jobs.
• The Latrobe Valley Authority’s (LVA’s) performance in helping the region transition given a drop in funding made available to the Authority in successive State Budgets.

While Labor and the Animal Justice Party attempted to block establishing of the inquiry yesterday, the motion was supported by the Nationals, Liberals and majority of the cross bench including the Greens; bringing it over the line – just.

“Latrobe Valley is a fabulous place to work, live and raise a family and the Inquiry will importantly give our community a voice and say in their future direction,” said Ms. Bath. “It must be treated as a catalyst for change.”

The Economy and Infrastructure Committee is required to report on its findings by December 13 this year.

Greens Decry “Dirty Deal” On Yallourn

While the Greens supported the inquiry and are no doubt happy with the news of an early closure, the secrecy surrounding the deal between the State Government and EnergyAustralia has raised its ire, as has the timeframe.

“According to reports this deal could include the government subsidising the coal-fired power station to stay open until 2028 even if power prices are so low they render the plant commercially unviable,” stated the Greens on Tuesday.

Recent analysis indicates Yallourn could experience significant financial stress as early as 2025 resulting from the huge levels of wind and solar energy supply expected to be added to the National Electricity Market (NEM) in the next few years.

Deputy Leader of the Victorian Greens Ellen Sandell MP, said it was “beyond outrageous” to subsidise another seven years of Yallourn with taxpayer money when that could go towards creating new industries and jobs in the Latrobe Valley.

Ms. Sandell pressed Victorian Energy Minister Lily D’Ambrosio on the deal during Question Time in Parliament on Tuesday, but the Minister reportedly refused to divulge any real detail, stating it was “commercial in confidence”.

An orderly and just transition that keeps the lights on is certainly needed – but if that can occur in a shorter timeframe thanks to renewable energy and supporting technologies, then why not go for gold?