The $1.3bn Victorian power plant would potentially have replaced two of the Yallourn’s four brown-coal stations in the valley.
The company said that low wholesale energy prices and reduced electricity demand did not make the project viable.
EnergyAustralia group executive manager for energy markets Mark Collette was quoted by The Age as saying that suppressed wholesale electricity prices and decreasing energy demand had led to the decision.
”We have therefore decided to put the development on hold until market conditions improve. We are seeing further deterioration in the energy market and wholesale prices, and we don’t expect conditions to improve in the foreseeable future," Collette added.
”It was not financially sustainable to continue through the permitting stage when a new power station may not be necessary until much later this decade.
"We will continue to monitor the market and if there are significant improvements we will review this decision.”
