Hazelwood Owner considering Closure or Sale

by Energy Action | Jul 01, 2016
In a statement made to the French senate, Engie CEO Isabelle Kocher mentioned that the company was considering the sale or closure of Victoria's Hazelwood power plant as part of its move away from coal-fired power.

Engie, the owner of the 1,680MW Hazelwood power station is considering closure or sale of the station. Hazelwood, which is located in the Latrobe Valley, is one of Victoria’s largest power stations, generating around 20% of the state’s power needs. Built in 1964, it is also one of the oldest and most polluting power stations in the country. On 25th June, the Weekend Australian reported that Engie has held discussions with the state government about Hazelwood’s future. These followed comments from the plant owner’s chief executive to a French senate committee that the station may be closed or alternatively sold if the Victorian government requires retention of the station to meet power demands.

 

Were Hazelwood to close the impact on emissions would be modest as the lost output would be picked up mostly by other coal fired stations that have spare generating capacity. With demand in most of the market being flat and with renewable generators eating into the fossil generators’ market share there will be plenty of these. However, with 20% of the state’s generation then available for other stations to meet, the upwards pressure on prices in Victoria, which are the lowest in the NEM, could be substantial.

 

Engie has emphasised that no decision on Hazelwood’s future has yet been made.

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