HAZELWOOD MINE AND POWER
STATION CLOSURE
FACTSHEET
Reasons for closure
Will it make power more expensive?
Hazelwood mine and power station are privately
owned, and their closure is a commercial decision
made by its private operators, Engie and Mitsui &
Co. Engie, a French company, is the majority
shareholder of Hazelwood with 72 per cent
ownership. Mitsui & Co, a Japanese company,
owns the remaining 28 per cent.
Victoria currently has excess electricity generation
capacity, and renewable energy and other lower
emissions sources like gas will help to continue to
meet demand. This excess generation means that
even when Hazelwood closes Victoria’s energy
market will still be oversupplied, which will help
keep prices low. Current estimates indicate that
there will be an impact of 85 cents per week for the
average Victorian household in 2017.
Engie has been reviewing each of its coal-fired
power stations, resulting in closure of those with the
most outdated technology. Since the beginning of
2016, one third of Engie’s global coal capacity has
been sold or closed, most significantly in Belgium
and Britain. The closure of Hazelwood is consistent
with Engie’s move away from coal-fired electricity
generation.
Commissioned in the late 1960s, Hazelwood is one
of the oldest coal-fired power plants in Australia.
Hazelwood accounts for around 13 per cent of
Victoria’s total electricity generation capacity. Any
increase in wholesale prices is likely to be partially
counteracted by increased production by other
suppliers, including new renewable generation
supported by the Victorian renewable energy
targets. Wholesale costs are only one part of retail
prices, which include a significant component for
network costs.