The role of brown coal in Victoria's energy supply has been bolstered by the sale of the La Trobe Valley's Loy Yang B station for an estimated $1 billion to Chinese-owned Alinta Energy after six months on the market.

The 1000 megawatt station, which generates 17 per cent of Victoria's energy needs, was offloaded by Japan's Mitsui and French energy giant Engie, the company that closed its ageing Hazelwood station in April this year as part of its long-term scheme to divest itself of coal-fueled assets.

The Hazelwood closure instantly removed 20 per cent of Victoria's energy generation capabilities, contributing to power price surges across the state.

The sale came only a day before the Coalition of Australian Governments meet in Tasmania, to discuss the implementation of the National Energy Guarantee, which places greater importance on the use of coal in power generation.