This morning Energy provider Energy Australia announced the closure of another one of Australia’s large, dirty, coal-fired power stations.
After decades of faithful service, the Yallourn power station in Victoria’s Latrobe Valley will retire in mid-2028. While that timeline may scare some, alternative energy storage solutions like batteries are dropping in price and over the next 5+ years will see further reductions.
EnergyAustralia has reached an agreement with the Victorian Government to deliver an orderly retirement of the power station.
The closing of power stations in Victoria and Australia more broadly, has traditionally been done very poorly. Hazelwood Power Station was abruptly decommissioned back in 2017 and energy supply became under pressure as a result. Thankfully this time it looks like we’ve learnt from that experience and this agreement with the VIC Government will help fund the retraining of staff.
Under the agreement, EnergyAustralia will retire Yallourn in mid-2028 and build new storage capacity through a 350 MW, four-hour, utility-scale battery project that will be completed by 2026. This ensures energy storage is built to firm increased renewable energy in Victoria, before Yallourn exits the system.
Yallourn’s workforce will be supported through a multimillion-dollar package to help them plan, reskill or retrain for their future. This support is in addition to worker entitlements.
EnergyAustralia’s goal is to be carbon neutral by 2050. Yallourn’s retirement will reduce the company’s emissions profile by 60 per cent, accelerating the pathway towards achieving this ambition.
EnergyAustralia is determined to demonstrate that coal-fired power can exit the market in a way that supports our people and ensures customers continue to receive reliable energy.