The Loy Yang A power station in the Latrobe Valley, Victoria, has been ordered to close by 2035, a decade earlier than planned. The power station, which produces around 47% of Victoria’s electricity, was required to close by 2049. However, it was found that the plant would have an increased chance of pollution ending the lives of people living nearby because the coal is not being mined as efficiently.
Shutting Australia’s dirtiest coal plant a decade early won’t jeopardise electricity supply – pv magazine Australiadirtiest coal plant …
Comments from the government about the issue
The government believes that this decision will help them avoid $1 billion in costs.
The closure also comes with a potential benefit for BHP Billiton, who own and operate Loy Yang A through their power company Latrobe Valley Power Company Pty Limited (LVPC). The company would be able to switch over to wind energy rather than coal-fired generation when Loy Yang A closes down.
Facing competition from solar and wind energy, the Hazelwood power plant’s owner, Engie SA of France, had previously argued that it was needed to meet rising demand and provide back-up during blackouts. The company said it would need up to $500 million of government funds over 10 years if it was forced to keep burning coal beyond its scheduled 2022 shutdown. The closure will cost at least 800 jobs at the plant as well as 300 contractors.
Backdrop to the coal plant
Power prices in the Latrobe Valley have increased 700% since 2002. The closure of Loy Yang A is expected to lead to an increase in power prices of up to 40% by 2020. The Australian Energy Markets Commission has said that a continuation of the scheme for the next five years would be unsustainable because of the impact on wholesale energy prices.
Victoria’s Labor government had supported Engie’s bid for a new coal-fired power station at Morwell, near Bendigo, which would have provided cheap back-up power throughout Victoria and beyond.
In 2011, Labor premier Denis Napthine promised to close Hazelwood in 2022 under a previous Liberal-National Coalition government led by Ted Baillieu. This promise was later broken.
Environment Victoria campaigns manager Nicholas Aberle said: “This is a big win for the Latrobe Valley, in particular the thousands of workers who will keep their jobs and their communities will be protected from pollution. Premier [Daniel] Andrews should be applauded for delivering on his promise to close Loy Yang A.”
Citations from the authorities about the incident of Coal Plant
The Sierra Club’s national campaign director, Melissa Price, said: “A decade early closure of Loy Yang is a massive victory for community groups and anti-pollution campaigners who have fought to shut this plant with its yearly 12 billion tonnes of greenhouse gas pollution.
