Nexa Advisory has analysed the performance of coal-fired power stations across the National Electricity Market (NEM). This report is part of a series of case studies which examines the reliability and performance of each of these generators as they approach the end of their technical lives.
This report analyses the performance of the 1,450 MW Yallourn Power Station in Victoria between 2012 to 2024, and finds:
- Yallourn has high downtime and frequent unplanned outages. It has exhibited elevated unplanned outages over the last decade – with an annual unplanned outage rate of 32 per cent in 2024
- Unless the Victorian Government closes Yallourn on time and unlocks the huge pipeline of proposed renewable energy projects, the state will struggle to meet its emissions reduction targets and more importantly keep the lights on
- The generator is responsible for approximately 12 million tonnes of CO₂ annually,
Recommendations
Nexa Advisory offers the Victorian Government several recommendations on the way forward:
- Commit to the on-time closure of Yallourn in 2028: Provide certainty to investors and stakeholders by adhering to the planned retirement date, facilitating the timely development of replacement renewable capacity.
- Lean into new capacity build: Maintain the current rate of renewable energy development and deliver the 8 GW of approved wind and solar projects, 4 GW of large-scale battery projects currently in the pipeline, as well as the 26.3 GW of Victorian offshore wind projects which have received feasibility licences.
- Accelerate near-term approvals to fast-track Victoria’s energy transition.
- Look beyond the Renewable Energy Zones (REZs) and encourage innovative, market-led intra-regional transmission and storage projects to diversify the state’s generation and storage capacity.
- Leverage the significant untapped potential of Consumer Energy Resources (CER) to strengthen system reliability and directly reduce consumer energy bills. We estimate there is 6 GW of potential rooftop CER capacity across Commercial and Industrial (C&I) buildings in Victoria. Additionally, the Victorian Government can further incentivise consumer energy solutions such as solar, home batteries, electric heat pumps, Electric Vehicles and demand-side participation to support the state’s renewable energy and emissions commitments and minimise reliance on gas during peak demand.
Read our report here: Nexa Advisory – Coal performance in the NEM – Yallourn