O’Brien’s Green Electricity Strategy

O’Brien’s Green Electricity Strategy

Victoria Minister for Energy and Resources Michael O’Brien

Coalition Govt Discontinues Negotiations On Partial Hazelwood Closure

Victor P Taffa

The Victorian Coalition Government has discontinued discussions over the former Labor Government’s uncosted and unfunded proposal to pay for the early closure of two units of Hazelwood Power Station, Minister for Energy and Resources Michael O’Brien announced today.

“Victorian families are already feeling the cost impact of the former Labor Government’s failed renewable energy and smart meter policies through their electricity bills.” Mr. O’Brien said.

“With the uncertainty and cost pressures from the Gillard Government’s proposed carbon tax, Victorians cannot be expected to also fund hundreds of millions of dollars to bring forward the retirement of two units at Hazelwood.”

Hazelwood produces approximately 23 % of Victoria’s electricity needs.


“The former Labor Government had no plan to provide an operational baseload replacement for the electricity generation provided by the two units of Hazelwood, despite their self-serving spin which was designed to curry favour with their electoral partners, the Greens.” Mr. O’Brien said.

“Without an operational replacement for the electricity generation from these units, the power would likely have come from electricity imported from other states and generated from black coal – a poor outcome for Victorians and the environment.”

“Nor did the former Labor Government appropriate one dollar to fund its proposal; this was Labor’s Hazelwood hoax.”

“Proceeding with Labor’s unfunded plan would have been an economically reckless gesture which would have increased costs and reduced security of electricity supply to Victorian families.”

“The Coalition Government does not and will not support such irresponsible and costly gestures.” Mr. O’Brien said.

The Coalition Government is delivering on its commitments to assist Victoria to transition to a lower emissions economy through a range of actions, including:

  • An additional $41 Million for the Energy Technology Innovation Strategy (ETIS) in this term;
  • Promoting the development of carbon capture and storage in Victoria, including with $30 Million for the CarbonNet project;
  • Directing the Victorian Competition and Efficiency Commission (VCEC) to inquire into and report on feed-in tariffs and regulatory and other barriers to the development of a network of distributed renewable and gas-fired electricity;
  • Providing practical assistance to households and businesses to save electricity through extending the Victorian Energy Efficiency Target (VEET) scheme.