News that French energy giant Engie is considering closing Hazelwood brown coal power station, one of the world's most-polluting power plants, provides an opportunity for government, industry and investors to engineer a smooth transition to renewable energy, clearly the future of electricity generation.

In recent days, Engie signalled it is looking at shutting down or selling the Hazelwood plant, as part of the partly French government-owned company's global shift from fossil fuels. Only weeks ago, the company bought a majority stake in US battery storage firm Green Charge Networks. Engie's chief executive predicts that as much as half of all electricity demand will be met by local generation, particularly solar panels.

The owner of the Hazelwood power station will close or sell the Victorian plant. Credit:Joe Armao

Given there is a significant oversupply in the National Electricity Market (NEM), and in light of the international shift away from coal-fired power stations, it is unlikely Engie would find a buyer for the Hazelwood plant, which was built nearly 50 years ago. Recent advances in the battery storage technology are likely to accelerate the transition to renewable energy.

The Victorian government should welcome the prospect of the plant closing, and help make it happen. In its recent budget, the government pledged $40 million towards helping the Latrobe Valley economy evolve. The Hazelwood plant directly employs about 550 people, and has a further 300 contractors. Engie's signalling of the plant's end was unexpected; the state government will need to re-asses its strategy, and may need to increase its financial commitment to the local community. But the future can be bright. Renewable energy will create jobs, and there is no reason why battery storage technology, if well supported by investors, should not create employment in the Latrobe Valley.