The Victoria state government has slapped down reports in the Murdoch media that secret meetings have been held between government officials, the market operator and the owner of the Yallourn coal fired power station to keep it open beyond 2028.
The reports, emblazoned on the front page of The Australian and reprinted also in the Herald Sun, a Murdoch tabloid, claimed that Yallourn “is set to stay open for four more years amid fears of devastating electricity shortages, in an extraordinary U-turn for the state Labor government’s renewable energy“
The article quoted unnamed sources as saying the Australian Energy Market Operator had warned of electricity shortfalls, and that talks had been held with Yallourn owner EnergyAustralia about extending its operations into the next decade to address the shortfalls. It said no decision had been taken.
The Victoria state government reacted quickly and angrily to the story, dismissing it as “false” and noting that it had not been contacted by the Murdoch journalists, and that EnergyAustralia had also told the newspaper that the claims were wrong and that Yallourn would close as currently planned in 2028.
“DEECA, AEMO and EnergyAustralia have confirmed that the claims are wrong,” the statement said. (It is reprinted in full at the end of the article.
“The three agencies also confirm that no such discussions have occurred and nor have there been “rolling talks”. AEMO has not advised the Victorian Government that Yallourn would need to be extended beyond 2028, as claimed in The Australian.”
In a separate statement, EnergyAustralia said:
“We have not met with the Victorian Government, or AEMO, to discuss extending the Yallourn power station.
“EnergyAustralia has publicly announced, and reaffirmed multiple times, the closure of the Yallourn power station by 2028. We have committed to Net Zero by 2050 and closing Yallourn by 2028 is part of that commitment.”
A spokesperson for AEMO also confirmed to Renew Economy that AEMO has not advised the Victorian Government that Yallourn would need to be extended beyond 2028.
AEMO’s annual supply forecast publication, the Electricity Statement of Opportunities, published last August predicted a potential breach of the interim reliability standard in 2028 in Victoria, but this is eliminated if the state and federal government schemes, such as the Capacity Investment Scheme, go ahead as planned.
The Murdoch media has run a decades-long campaign against the transition to renewables, amplifying climate denier and fossil fuel industry talking points about the inability of wind, solar and storage to power major industries, and questioning the need to close ageing coal generators and cut emissions.
Those claims are looking increasingly weak as the country’s biggest energy users, particularly Rio Tinto, sign up for massive solar battery projects and other renewables to power their giant smelters and refineries. They say the smelters will not survive beyond the end of the decade of they have to rely on ageing coal power assets.
The issue is sure to be a major talking point in the coming election campaign, as the Coalition promotes its plans to burn more coal and gas, and slow down the roll out of renewables in the hope that nuclear can one day power industries, while the Greens and independents will push Labor to go faster on its path to net zero.
Yallourn is due to close in 2028 under a deal hatched between EnergyAustralia and the state Labor government in 2021.
It was pitched at the time as an “early closure” – the original date was in the early 2030s – but the given the age of the generator and the challenge of keeping it operational, there has been widespread speculation that the deal was about guaranteeing support to EA to keep the ageing generator running until 2028, rather than closing even earlier.
The contents of that deal have never been released.
In NSW, Origin Energy went about it a different way, announcing the early closure of the country’s biggest coal generator, Eraring, and then negotiating with a two year “delay” to that advanced closing date after landing the promise of $450 million in underwriting from the NSW state government. At least that was made public.
Victoria has legislated targets of 65 per cent renewables by 2030 and 95 per cent renewables by 2035, which will mean the closure by that date of all three of its remaining coal generators – Yallourn, Loy Yang A and Loy Yang B by that date. Some gas plants will likely still be operating to cover gaps when needed.
The state currently runs on 43 per cent renewables (its share of demand over the last 12 months), and is a net exporter of electricity, sending 6.5 terawatt hours of electricity to other Tasmania, South Australia and NSW over the last 12 months, and importing only 2.5 TWh.
Victoria might have exported more but for the constraints of its transmission links, which have resulted in heavy curtailment of its wind and solar output.
It hopes to address this through the construction of multiple new transmission links, some of them hotly opposed, including the new Project EnergyConnect that will link South Australia and NSW, with a “spur line” to Victoria, Marinus Link to Tasmania, and VNI West to NSW.
The statement from the office of Lily D’Ambrosio, the Victoria minister for energy and resources, in full:
“In an article published on the evening of 18 March 2025, The Australian has falsely claimed that EnergyAustralia, the Victorian Department of Energy Environment and Climate Action (DEECA) and the Australian Energy Market Operator (AEMO) have held talks about extending the operations of Yallourn Power Station beyond 2028.
“DEECA, AEMO and EnergyAustralia have confirmed that the claims are wrong. The three agencies also confirm that no such discussions have occurred and nor have there been “rolling talks ”.
“AEMO has not advised the Victorian Government that Yallourn would need to be extended beyond 2028, as claimed in The Australian. Before publication, EnergyAustralia confirmed to The Australian that the plant would close in 2028. The Australian did not contact the Victorian Government for comment prior to publication.”
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