Australia's dependence on burning brown coal to produce power is diminishing, new figures reveal, as ageing coal-fired power stations close and the use of black coal, gas and renewable energy rises.

While the nation remains heavily reliant on coal and other fossil fuels for electricity generation, the use of brown coal – one of the most carbon emission-intensive energy sources – eased 17 per cent in the 2018 financial year to supply about 13 per cent of energy demand.

Brown coal-fired power use in Australia has fallen 17 per cent as ageing generators are taken offline. Credit:Paul Jones

The downturn in the production of brown coal-fired power is linked to the closure of Victoria's Hazelwood power station in the Latrobe Valley and the impact of ageing coal-fired plants having to shut down because of maintenance issues.

Coal remains dominant in Australia's energy mix, according to the statistics to be released by the Morrison government on Friday. But the decline of brown coal drove a 4 per cent dip in overall national coal use in 2017-18, while the use of black coal increased 3 per cent.