News | 26th Jul, 2010

Plan to phase out Hazelwood power station

Monday, 26 July 2010
ABC News

The Victorian Government has announced plans to pursue the gradual shut down one of Australia's most polluting power stations.

The Government wants to shut down a quarter of production at the Hazelwood power station in the Latrobe Valley over the next four years.

Hazelwood is Victoria's oldest coal-fired power station and has been the target of a long-running campaign by environmentalists.

Ninety percent of Victoria's electricity is produced by coal-fired power.

The Government has revealed it is in talks with the owners of Hazelwood, International Power.

But the Premier John Brumby has refused to reveal whether a deal has been struck, or what financial incentives may be offered to the company.

Mr Brumby says the planned phase-out of Hazelwood creates certainty for the state's power generators.

"The most cost-effective way to clean up our environment and achieve this reduction in greenhouse gas over the next four years is to close two of the eight units at Hazelwood Power Station," he said.

"Victoria needs certainty in relation to Hazelwood to both reduce emissions and bring forward new clean energy supplies.

"The Government intends to engage in discussions with Victoria's brown coal-fired generators and intends to conduct an open book process to ensure the most cost effective way of reducing emissions."

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