Australian second largest power station to close in 2017

One of Australia's largest power stations, Hazelwood power station in the State of Victoria, will be closed in March 2017 due to high cost of operation, its French owners said Thursday.

Hazelwood had been dubbed the dirtiest power station' in Australia on account of it producing 15 percent of Victoria's, and three percent of Australia's, total greenhouse gas emissions.

Alex Keisser, CEO of the Australian arm of Engie, the French company that owns the 1600-megawatt power station, said Hazelwood was no longer economically viable.

"Engie in Australia would need to invest many hundreds of millions of dollars to ensure viable and, most importantly, continued safe operation," Keisser said in a statement on Thursday.

"Given current and forecast market conditions, that level of investment cannot be justified."

The decision to shut down Hazelwood power station, which produces 22 percent of Victoria's power at its peak capacity, will mean up to 1000 jobs are lost in the Latrobe Valley, a region which already has a high rate of unemployment.

Engie, who told workers at the plant that selling Hazelwood was not a realistic option, will provide the plant's employees with skills training and counselling to assist with their transition.

Daniel Andrews, Victoria's Premier, announced that his government would spend 15 million US dollars to set up an authority in the Latrobe Valley to help residents of the region.

Andrews' government released modelling on Wednesday that suggested the closure of Hazelwood would push household power bills up by between four and eight percent. Endit