Power Price Spike Hits Australia as Coal Plant Shuts Down
- Electricity futures surged since Engie flagged Hazelwood exit
- Market struggling to absorb impact on prices of closure: UBS
The Hazelwood coal-fired power station.
Photographer: Carla Gottgens/BloombergThis article is for subscribers only.
The closure of one of Australia’s biggest power plants may spark a new bout of electricity price volatility, potentially worsening the country’s energy crisis.
The final two units of the 1,600-megawatt coal-fired Hazelwood plant in the state of Victoria will be shut Wednesday by owners Engie SA and Mitsui & Co. After operating for 50 years, the closure of the plant, which Engie estimates provides a quarter of the state’s and about 5 percent of the nation’s power supply, has led to a surge in prices.