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The Victorian government has confirmed the Loy Yang A coal-fired power station in the Latrobe Valley will close by 2035 and $30 million will be put towards "repurposing" the existing site.
Key points:
- AGL has submitted its official notification to close Loy Yang A by 2035
- It plans to put $30 million towards "repurposing" the mine
- Environmental groups want more certainty about the future of the site
Energy giant AGL announced in September last year it would close Loy Yang A earlier than planned.
Energy Minister Lily D'Ambrosio visited the mine and power station on Monday to signal the beginning of a 12-year transition plan.
Ms D'Ambrosio said the closure was another step towards the Victorian target of 95 per cent renewable power generation by 2035.
"One of the biggest barriers for renewable energy investors is clarity around when fossil generators will close," she said.
"A guaranteed closure timeline provides improved certainty around Victoria's energy demand."
What happens to the mine?
The company has announced the site will be "repurposed" when it is no longer being mined.
But it would not provide any indication about how it would be used.
Friends of Latrobe Water secretary Tracey Anton said she believed the company's move to "repurpose" was putting off the inevitable problem of having an unused gaping hole.
Loy Yang A power station is Australia's biggest single carbon polluter.
It also generates 30 per cent of the state's electricity requirements with its four generation units.
AGL has promised $50 million for a community and economic development fund.
The announcement comes after a conglomerate announced at the weekend it planned to build a 250-turbine offshore wind farm along the Gippsland coast which would fill 40 per cent of the state's power demand.
Ms Anton said the confirmed closure date offered no more certainty about the future of the mine.
"That's not good enough, repurposing doesn't give us any resolution to plan ahead for water management or for how rehabilitation can occur," Ms Anton said.
"It's not facing the problem now, it's not declaring and putting their cards on the table now.
"They're just putting it out there to any other private investors that the pit is open to any idea you can come up with."
Open cut future uncertain
When the Loy Yang A power station and mine closes, the neighbouring Loy Yang B site will be the last coal-fired power station operating in the Latrobe Valley.
Hazelwood Power Station closed in 2017 and Yallourn Power Station is slated to close in 2028.
Rehabilitation works are still in progress at the former Hazlewood site.
Looking from the freeway, Hazelwood's mine is visibly filling with water from sprinkler systems.
"They're using spray sprinklers under an agreement from Moondarra [reservoir] to protect the community from fire yet they run rain, hail or shine," Ms Anton said.
Despite the headstart on filling the mine with water, mine owner Engie hasn't secured approval from the state government, which is reviewing community and stakeholder submissions to the Environment Effects Statement.