Loy Yang B failure sends prices soaring, triggers supply safeguards

The Australian Energy Market Operator has kicked off emergency measures to protect power supply after Victoria's Loy Yang B brown coal-fired power station failed on Thursday afternoon, sending electricity spot prices soaring.

As temperatures rose around southern Australia Loy Yang B's generators failed at around 4pm, instantly taking around 528 megawatts of energy out of the state’s grid.

Read Cole Latimer’s story in today’s Melbourne Age - “Loy Yang B failure sends prices soaring, triggers supply safeguards.”

La Trobe Valley's Loy Yang B coal-fired power station sold to Chinese-owned company

The role of brown coal in Victoria's energy supply has been bolstered by the sale of the La Trobe Valley's Loy Yang B station for an estimated $1 billion to Chinese-owned Alinta Energy after six months on the market.

Loy Yang Power stations A and B in Victoria's Latrobe Valley.

 The 1000 megawatt station, which generates 17 per cent of Victoria's energy needs, was offloaded by Japan's Mitsui and French energy giant Engie, the company that closed its ageing Hazelwood station in April this year as part of its long-term scheme to divest itself of coal-fueled assets.

The Hazelwood closure instantly removed 20 per cent of Victoria's energy generation capabilities, contributing to power price surges across the state.

The sale came only a day before the Coalition of Australian Governments meet in Tasmania, to discuss the implementation of the National Energy Guarantee, which places greater importance on the use of coal in power generation.

Read Cole Latimer’s story in today’s Melbourne Age - “La Trobe Valley's Loy Yang B coal-fired power station sold to Chinese-owned company.”