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What does Hazelwood's closure mean?

AAP logoAAP 3/11/2016

WHY IS HAZELWOOD CLOSING?

French owner Engie says it's no longer economically viable to operate the coal-fired power station due to the age of the asset and the low price of electricity.

WHAT ABOUT THE JOBS?

Hazelwood employs 750 people - 450 direct employees and 300 contractors.

Engie has set aside $150 million for entitlements - an average of $330,00 each.

Up to 250 people will be needed through to 2023 to rehabilitate the mine and power station site.

GOVERNMENT SUPPORT?

The federal government will cough up $43 million to fund infrastructure projects, a jobs and investment program and for retraining and financial services support.

The state government has committed $42 million for TAFE training, financial and emotional counselling and to establish a government authority to attract new businesses.

POWER PRICES TO SPIKE?

It depends who you believe.

The Victorian government estimates an increase of less than four per cent, or $1 a week, in 2017 but other experts suggest prices will jump 10 per cent or more in the longer term.

THE END OF COAL?

Engie Australia chief executive Alex Keisser says energy production is moving away from coal but it needs to be done "in a very considered manner".

Engie is also looking to sell its Latrobe Valley Loy Yang B coal-powered station.

Former Climate Commission chief Tim Flannery says "globally coal is in eclipse" and new, cleaner energy forms are becoming cheaper by the year.

WHAT DOES IT MEANS FOR POWER SUPPLY?

Federal Energy Minister Josh Frydenberg says Victoria will import more black coal-generated power from NSW and some hydro power from Tasmania.

Gas and renewables will also enter the market.

The Victorian government says the state's energy capacity will continue to exceed peak demand needs and it will continue to import or export power depending on price.

HAZELWOOD TO BECOME A LAKE?

There are plans to turn the mine site into a lake, which is expected to take 12 years.

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