Energy Australia asks Andrews Government to extend licence for Yallourn coal-fired power station

THE Andrews Government’s renewables target could pose a threat to the future of a major Latrobe Valley power plant, as the plant’s owner bids for more time.

THE Andrews Government is being asked to extend the ­licence for Australia’s second largest coal mine amid growing doubts about whether its renewable energy target will force the mine to shut down.

The Herald Sun can reveal Energy Australia, owner of the Yallourn power station that provides nearly a quarter of the state’s electricity, has applied to extend its licence from 2026 until 2050.

Yallourn has enough coal to continue operating until 2032 but high-level industry figures believe it may have to close earlier because of the government’s promise to have 40 per cent of power coming from ­renewable sources by 2025.

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Yallourn power station is in the Latrobe Valley.

Energy Australia’s energy executive Mark Collette told the Herald Sun that “policy and market settings may impact our approach” to operating until 2032.

“We are currently assessing the potential impact on our business from the introduction of a Victorian Renewable Energy Target and the possibility of a National Energy Guarantee,” Mr Collette said. “Right now, our plan is to continue to invest in Yallourn and our people for so long as the plant is needed, so our customers ­continue to receive reliable, ­affordable electricity supply.”

The company has asked for its licence to be extended until 2050 to give it time to rehabilitate the mine once it closes.

A government spokesman confirmed the extension application had been made and that the departmental earth resources regulation team would provide advice to Resources Minister Tim Pallas soon.

The licence extension looms as a tricky political ­decision for the Andrews Government, which has faced pressure from the Greens and environmental groups to end Victoria’s reliance on coal.

Premier Andrews did not deny Yallourn would close before 2032 when asked directly last year.

But the government will also want to avoid a repeat of Hazelwood’s closure last year, which forced up power prices and played into the Opposition’s cost-of-living attack.

Premier Daniel Andrews did not deny Yallourn would close before 2032 when asked directly last year.

Mr Collette said Energy Australia was “working constructively” with government bureaucrats on the proposed ­licence extension. “The application seeks to extend mining operations from the scheduled expiry of the extraction licence in 2026 until 2032 when the power station is planned to close, and then provide time to complete rehabilitation of the site by 2050,” Mr Collette said.

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