Energy supply is a major issue. Credit:Paul Jones Gippsland lobby group Voices of the Valley is also holding a march in Traralgon today, calling for a "just transition" from an economy fuelled by the coal-fired power station. Previously, a staged shutdown had been considered, but orders from WorkSafe Victoria requiring new investment are understood to have all but convinced the company the plant is no longer viable, with environmental concerns also a factor. The Andrews government has been working to come up with a structural adjustment package for the Latrobe Valley before the decision. The valley is already one of the most disadvantaged parts of the state, with unemployment at 19.7 per cent in Morwell and 14.6 per in Moe.

Aeriel view of the Hazelwood power station near Morwell in 2014. Credit:Jason South Hazelwood has about 550 direct employees and 300 contractors, with hundreds more jobs indirectly linked. It has been estimated that 150 to 200 of these jobs could be retained cleaning up the site and rehabilitating the neighbouring open-cut coal mine. Engie of France and Mitsui of Japan are set to announce the closure of the Hazelwood brown coal power station on Thursday. Credit:Pat Scala Plans under consideration include filling the pit with water to create a lake for community use.

Greens federal MP Adam Bandt greeted the news with exuberance, calling a press conference to declare "the age of coal is over". State election rally in 2010 calling on all political parties to replace Hazelwood. Credit:Craig Sillitoe "This good news is the start of Victoria's energy transition, where dirty coal is replaced with clean renewable energy," he said. But Mr Bandt added that successive governments "have been asleep at the wheel and now workers and communities in the Latrobe Valley will be left in the lurch unless we develop a support plan." The fire at the Hazelwood plant in 2014. Credit:Keith Pakenham

Ms D'Ambrosio said she had called Engie's senior management on Friday night seeking more information, but they gave her no indication that closure was imminent. Nor did they give her a time line for the possible shut down, she said. "Let me be very clear – the response from senior management was that no decision has been made," she said. "But what is absolutely important here of course is to understand that our government is absolutely committed to working with the people of the Latrobe Valley, to plan ahead to ensure their future is a prosperous one, and is a future that is sustainable." Built between 1964 and 1971, Hazelwood has long been targeted by environment groups. It is responsible for up to 15 per cent of Victoria's greenhouse gas emissions and 3 per cent of national emissions when fully operational. Ms D'Ambrosio said the Latrobe Valley community could be assured that the government was "with them every step of the way", although no decision had been made.



"If the company decides to stop operating, we will do all we can to ensure those workers and their families get the support they need," she said. CFMEU Victorian mining and energy president Trevor Williams said the union was expecting an announcement about Hazelwood next month, but was uncertain whether it would be an outright or gradual closure.

He called for a transition scheme that would allow older workers ready for retirement from Victoria's coal stations and mines to take a package and younger workers to transfer to other companies to stay in the industry. An Engie spokesman said no decision had been made, and otherwise declined to comment. The state government has already announced $40 million to help the Latrobe Valley economy adjust, with sources flagging efforts to attract new industries to the area. Analysts say the electricity market has more than enough generation capacity to cope with Hazelwood's removal. In 2014, the Australian Energy Market Operator estimated there would be 7400 megawatts of surplus capacity. Analysts have given wildly varying estimates of the impact of shutting Hazelwood on electricity prices, ranging from 0.2 per cent to 25 per cent.

Environment Victoria chief executive Mark Wakeham said retiring Hazelwood was the single largest step that could be taken to clean up Australia's energy supply. "Engie is at a fork in the road. Like all other major global electricity companies, it must choose clean energy as the world acts on climate change," he said. The French company holds a 72 per cent stake in the plant. The remainder is owned by Japanese company Mitsui. Engie chief executive Isabelle Kocher said in May that the company was considering closing or selling Hazelwood, although no timeframe was suggested. "For the Hazelwood plant, we are studying all possible scenarios, including closure, or a sale if the state of Victoria tells us that it cannot meet power generating needs without this plant," Ms Kocher reportedly said

Loading The plant's operators faced scrutiny over a coal mine fire that burned for more than a month in 2014, blanketing Morwell in smoke. An inquiry found it was likely pollution from the fire had contributed to deaths in the area. Any decision to sell or close the plant will have implications for the national electricity market and is likely to be closely watched by the federal government.