In front of Latrobe Valley’s Loy Yang power station on Monday, One Nation Victoria announced it would keep the coal plant running past its expected 2035 closure date, cancel renewable energy projects and lift the state’s ban on nuclear energy if elected in the November state election.
But energy experts are doubtful One Nation’s plan will lead to reliable and affordable power.
What happened: Pauline Hanson and One Nation Victoria leader, Warren Pickering, announced the party’s energy policy will involve expanding gas exploration, extending coal fired plants beyond already planned shutdowns and halting the development of Gippsland’s Offshore Wind Zone.
Why it matters: As Victoria’s aging coal-fired power stations prepare for retirement and renewable energy developments ramp up to fill the gap, a change in state government policy could impact power bills, local businesses and developers.
Quick recap: The Latrobe Valley is home to three coal-fired power plants, two at Loy Yang and one at Yallourn.
The companies that operate them, AGL, Alinta Energy and Energy Australia, have all confirmed the stations will be decommissioned in the coming decades. The most common explanation is that they are expensive to run in a market increasingly competing with cheaper renewable energy sources.
The power stations sit within the Gippsland Renewable Energy Zone (REZ) between Morwell and Sale, which is a state government designated area for clean energy developments like solar, battery and wind farms.
AGL, Alinta Energy and Energy Australia all have plans to construct renewable energy projects on the sites of the coal power stations.
One Nation has not stated how much it will cost an incoming government to keep the coal-fired power plants operational as they become less reliable due to their age.
Keep Loy Yang firing: Pickering and Hanson said they would force energy company AGL to keep Loy Yang operating past its scheduled 2035 closure date.
AGL is aware of One Nation's policy but has made no changes towards its plan of retiring the mine on schedule.
In December 2025, the company secured access to vast quantities of water to rehabilitate the open-cut mine pit after its closure and has plans to build a grid-scale battery on the site.
What they said: Senior Fellow of the Energy Program at Grattan Institute, Tony Wood, told the Monitor he doubts a state government could force AGL to keep the power station operating.
“You can't avoid the fact that these power stations are around 50 years old. The government would have to pay to keep them open longer,” said Wood.
Loy Yang A will be 51 years old when it is closed in 2035.
The average lifetime of a coal powered plant in Australia is 29 years, according to Energy Networks Australia.
“Even if you spend more money on it, they're still old and they're still unreliable. They're still going to shut down and break down more often”, said Wood.
One Nation’s Pickering acknowledged at the press conference the nearby Yallourn coal-fired power station, closing in 2028, had significantly deteriorated and was too far gone to continue operating.
We’re going nuclear: One Nation Victoria would also move to scrap Victoria’s 1983 ban on building nuclear power if it won government.
Even if nuclear power was legal in the state, the federal ban legislated by the 1998 Howard government would still have to be repealed before a plant could be built.
Wood said nuclear energy would not be an affordable answer to Victoria’s energy needs.
“I'm not anti-nuclear. I don't have a problem having a sensible conversation about the possible role of nuclear power,” he said.
“The idea that you could extend the life of coal-fired power stations, quit all the renewable projects and build nuclear power just doesn't provide an affordable, reliable source of energy.”
One Nation Victoria did not confirm where the nuclear reactors would be located or how much they would cost.
Where’s the gas at?
One Nation also pledged to fast-track gas exploration in the Gippsland and Otway basins.
But Senior Climate & Energy Advisor at Environment Victoria, Dr Lucas-Healey, told the Monitor she is doubtful there is any gas left in the Bass Strait.
"We really need to stop pretending that there's gas still to be extracted in Victoria, and we need to look to the future."
Woodside Energy plans to begin removing Bass Strait offshore oil and gas platforms in 2027.
Offshore wind no more
One Nation also confirmed it would scrap Victoria’s Renewable Energy Zones (REZs) and cancel Gippsland’s offshore wind development, leaving industry leaders and local businesses concerned that over a decade of work could be abandoned.
The CEO of family-owned Port Anthony, Ben Anthony, told the Monitor he has been talking with developers about becoming a maintenance hub for the offshore wind industry for over 10 years.
“The yo-yoing of different party positions as they come and go make it virtually impossible for major projects to move ahead,” Anthony said.
Anthony is expecting the rollout of offshore wind will see an increase of long-term jobs and permanent residence in South Gippsland.
Project Director for Gippsland’s offshore wind project Blue Mackerel, David Ghaly, told the Monitor scrapping the industry would be a missed opportunity for Victoria.
“It presents a lot of value to the state, both in terms of infrastructure, energy security and long-term ongoing employment for the region. We hope that even if there is a change in government, that view is shared.”
Cover images credit: AAP Image/Joel Carrett.