Energy Australia has announced that it will close the Yallourn power station in Victoria’s Latrobe Valley in mid-2028, four years ahead of schedule, and build a 350 MW battery instead. The 1,480 MW brown coal-fired plant currently produces about 22 per cent of Victoria’s electricity and is the oldest power station in the state. It also employs about 500 permanent workers in addition to a team of contractors. However, Energy Australia announced that it will work with the Victoria government on a A$10 million support package to reskill the affected workers.
Energy Australia has set sights on becoming carbon neutral by 2050. With the shutting down of the Yallourn power station reduce, Energy Australia’s carbon dioxide emissions are expected to fall by over 60 per cent. The company also reported that it will ensure that the storage is built in Victoria well before Yallourn exits the system.
In February 2021, Victoria’s state government allocated A$540 million in its 2021 budget for the first stage of the development of renewable energy zones. In January 2021, Australia’s energy retailer Origin Energy announced to build a 700 MW capacity battery at a coal-fired power plant in Eraring in the Hunter region of New South Wales. In the same month, Neoen initiated the planning process for a 500 MW/1,000 MWh battery storage project in New South Wales.