The owner of one of Victoria’s large coal-fired power stations has implored the federal government to step in as the lender of last resort to the industry, as banks withdraw from fossil fuels and make it harder for coal plants to secure debt.
Alinta Energy, which runs the Loy Yang B coal-fired generator in the Latrobe Valley, has recently gone through what managing director Jeff Dimery described as an “exceedingly difficult” process in seeking refinancing for the facility.
Alinta owns Victoria’s Loy Yang B coal-fired power station.Credit:
“The number of parties that started out saying they were willing to participate in that underwriting diminished greatly from the start to the finish line,” Mr Dimery told the Credit Suisse Australian Energy Conference on Thursday.
As a growing number of banks and insurers continue withdrawing from coal lending due to its contribution to global warming, Mr Dimery called on Canberra to consider stepping in to help prevent the sudden shutdowns of cash-strapped coal-fired power stations and the “disorderly” exit of coal from the energy grid.