AGL Energy – Australia’s largest emitter of greenhouse gases – announced this week it will shut the Loy Yang A power station in Victoria’s LaTrobe Valley in 2035, a decade earlier than planned.

This is significant for the Australian electricity industry. Loy Yang A provides around 30% of Victoria’s power and is Australia’s largest single emitting industrial facility.

But while the announcement has made headlines, it comes as no surprise. The power station burns brown coal which, while cheap, is an inefficient and emissions-heavy source of electricity. Brown coal-fired power stations are also failing to compete with the gathering pace of renewables.

AGL promises to replace the electricity provided by Loy Yang A with large-scale renewables and firming generation (such as batteries). This is, in my view, the most important commitment, because it’ll help ensure Australians have reliable electricity in the decades to come.

A big week in energy

AGL emits more than 40 million tonnes of carbon dioxide equivalent each year. Its announcement to bring forward Loy Yang A’s closure is no doubt largely in response to consumer and shareholder views that the electricity sector must decarbonise.

Consumers are voting with their feet and increasingly demanding electricity sourced from renewable generation. Indeed, Woolworths, BHP and Aldi are just a few high profile brands that have committed to buying 100% renewable energy.

The announcement comes amid a big week of energy news. The Queensland government released its Energy Plan, which promises to shift the state to 70% renewable energy by 2032 and 80% by 2035. The plan involves an estimated A$62 billion of investment in the energy system up to 2035.

Meanwhile, the Victorian government announced plans for 2.6 gigawatts of new energy storage capacity by 2030, jumping to 6.3 gigawatts by 2035.

This is all against the backdrop of the federal government’s commitment to have 82% renewables in the Australian grid by the end of the decade.

Read more: https://theconversation.com/so-long-loy-yang-shutting-australias-dirtiest-coal-plant-a-decade-early-wont-jeopardise-our-electricity-supply-191577