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AGL Loy Yang Power Station

Loy Yang A power station is targeted for closure in 2035 as AGL reshapes its future energy portfolio in one of the most significant decarbonisation initiatives in Australia.

Loy Yang Power Station

Loy Yang A Power Station and Mine at a glance

  • 600 employees and up to 300 contractors.
  • The Power Station has a nameplate capacity of 2,210MW and generates approximately 30% of Victoria’s power requirements and produces enough power to supply over 2 million average Australia homes every year.
  • Located in the Latrobe Valley, 165 kilometres southeast of Melbourne.
  • The Power Station was constructed between 1984 and 1988. 
  • The station and adjoining mine was owned and operated by the SECV until privatisation in 1995, and both were acquired by AGL in 2012.
  • The mine is Australia’s largest brown coal mine with an annual output in excess of 30 million tonnes of coal and three-four million cubic metres of overburden. This equates to 3600 tonnes of coal an hour and 2500 cubic metres of overburden an hour.
  • Mine area is 1200ha, mine depth is 200 metres, and its length is more than five kilometres.
  • Four dredgers operate in the mine. They are 150 metres long, 50 metres high and weigh 5000 tonnes.

A clear pathway for a responsible energy transition

The world is changing and so are we. As we decarbonise our power generation portfolio, we’re committed to playing our part to support an orderly energy transition.

As part of our planning for the future of the Loy Yang site, we have committed to a Structured Transition Agreement (STA) with the Victorian Government to support the respectful and constructive retirement of the Loy Yang A Power Station.

Consistent with our targeted closure date for the Loy Yang A power station announced in September 2022, the agreement commits to a scheduled closure date of 30 June 2035. 

This is an important agreement that provides certainty to our customers, employees, the energy market and the Victorian government in relation to the ongoing operations, future closure and rehabilitation of the Loy Yang A site. 

Read more about the Structured Transistion Agreement.

Latrobe Valley low carbon energy hub is more than a vision

We’re committed to repurposing the Loy Yang site into the Latrobe Valley Integrated Industrial Energy Hub to support regional economic diversification and to create new employment opportunities.

We have plans for a grid-scale battery and have signed a Memorandum of Understanding (MOU) with Solar Recovery Corporation (SRC) for a feasibility study into establishing a solar photovoltaic (PV) panel materials recovery facility. 

But it’s only the beginning.

Our Loy Yang site has several features to support an industrial low carbon energy hub, and with 6,000ha of land development potential as well as existing transmission infrastructure, we’re excited to have started the early stages of energy hub planning.

Loy Yang, and the Latrobe Valley, have a skilled workforce, our site has established transport connectivity and it played a significant role in the successful Hydrogen Energy Supply Chain (HESC) pilot project, which has now moved into a commercial feasibility investigation stage.

We are also exploring solar, wind power, and co-location with advance manufacturing and new recycling industries.

We are working with government, local key stakeholders, educators, industry, business partners, and the community to transition to a new era of renewable energy generation and bring new industries and opportunities to the Latrobe Valley.

Supporting our people

The energy transition is an industry-wide transformation that will involve significant changes to the way AGL operates. We will need the teams and skills we have today for many years to come, however as we transition to renewable and firming generation the labour and skills required to operate our generation assets will change.

Ensuring a respectful transition for our workforce is an important objective in our planning for the future of the Loy Yang site and will continue to be a priority as we decarbonise our generation portfolio.

AGL has committed to a multimillion-dollar Workforce Transition Support package to ensure our Loy Yang employee’s transition is effectively managed and that the workforce receives appropriate support.

Supporting the local community

In recognition of the important relationship we have with the Latrobe Valley community, AGL has committed a total investment of $50 million to support the transition of the Loy Yang A power station, the site and the regional economy through the establishment of a Community and Economic Development Fund supported by AGL. 

The fund includes $20 million to be directed to community activities and $30 million to be directed to site repurposing activities.

Community complaints and enquiries

AGL understands that we don’t always get it right, and we want to be informed when we don’t. If you would like to provide any feedback, good or bad, or simply ask some questions, please feel free to get in touch via the following channels:

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Complaints and Enquiries Hotline

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AGL Community Complaints & Enquiries,
Locked Bag 14120 MCMC,
Melbourne VIC 8001

Learn more  about how we handle general customer complaints on our complaints page.