Victoria could be still burning brown coal to produce electricity in 30 years, after the state government extended the licences of two key power stations in the Latrobe Valley.

Green groups are furious at the deal to keep what they call Australia’s dirtiest power stations at Yallourn and Loy Yang open until 2032 and 2048 respectively, calling Friday's decision a “win for the big polluters”.

The Loy Yang and Yallourn power stations will continue to burn brown coal. Credit:Justin McManus

But Treasurer and Resources Minister Tim Pallas says he has secured “certainty” for workers in the valley and negotiated a 17-year clean-up period after the generators, which supply about 70 per cent of the state’s electricity, and their mines have stopped operating.

Mr Pallas also says there will be no repeat of the debacle over the closure of the Liddell mine in NSW, with the operators of the Victorian power stations, Energy Australia and AGL, agreeing to give at least five years' notice of any intention to shut down their operations.