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Fears Power Prices to rise as Coal Generators close


Source: The Age, 8 November 2016

Electricity prices are almost certain to go up following the closure of the Hazelwood Power Station in Victoria's Latrobe Valley but by how much is far from certain amid competing plans to build more windfarms and the possibility of the closure of a large aluminium smelter which could free up more power generation capacity.

"It is likely prices would go up.There is less price competition and there would be changes in the market power of the remaining operators.

"In the longer run, if Victoria starts to get up to speed with meeting its new renewable energy target it would mean more wind coming into the market which would push prices down."

If the Portland aluminium smelter in Victoria were to close, this could result in a large new block of electricity supply being freed up, which could push prices back down, Mr Saddler said.

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