Hazelwood's coal supply would likely have run out around 2009 without the 2005 coal mine extension.
This extension, and the associated environmental impacts, have led to significant criticism by environmental groups, and civil disobedience actions (see below).

During 2011 and 2012, the Australian Government considered a Contract for Closure program to complement the Clean Energy Act policy.
Hazelwood would likely have been closed under this program had it been pursued.
However, this program was scrapped in September 2012 and no plants were closed.

On 3 November 2016, Engie announced that Hazelwood would be closed by the end of March 2017, citing the company's transformational policy of investing solely in low-carbon and renewable energy, as well lower energy prices and oversupply within Victoria.
 In May 2016, CEO Isabelle Kocher said the company was reviewing its remaining coal plants one by one and would close those with the most outdated technology.

The largest shareholder in Engie is the French government, which owns 33% of the company.
The French Environment Minister said ENGIE would 'disengage' from Hazelwood power station during a documentary that aired on French TV in May 2016.
The Minister's response came after receiving a petition about the Hazelwood mine fire from Environment Victoria.

The decommissioning and rehabilitation of the site is estimated to cost at least $743 million, six times the previously predicted amount.
This includes $439 million to rehabilitate the mine, and $304 million to demolish the plant and restore the surrounding area.
This is in addition to $324 million payable by the owners for redundancy and leave entitlements over the two years after closure, bringing the total cost of closing the plant to almost $1.1 billion.

In the lead up to the closure, there was insecurity around the numbers of Hazelwood workers Engie would keep employing in the decommissioning and rehabilitation processes, the redundancy packages offered, as well as the future of other workers and the local community in and around Morwell directly and indirectly impacted by the closure of the power station.

On 27 March 2017, units #8, #6 and #4 were permanently shut down, followed by units #2, #7 and #5 on 28 March 2017, and units #3 and #1 on 29 March 2017.
Unit #1 was shut down last at 4.56pm.
It was chosen to be last because Unit 1 was the first Hazelwood generating unit to come into operation on 30 November 1964.
Decommissioning of mine and power station plant and equipment was expected to take 12 months.

In a press release on the subject of the closure, Engie in Australia's Chief Executive, Alex Keisser, acknowledged the contributions of past and present Hazelwood employees, and the role the power station has played in the Latrobe Valley. "
While Friday will be the end of an era and a very sad day for everyone who has had an involvement with Hazelwood over the past 52 years, it should also be a very proud day," Keisser said. "
The decision to close Hazelwood was extremely difficult and was made only after we investigated all options to keep the business open.
While it was state-of-the-art when it opened in 1964, it has now reached the end of its productive life, lasting far longer than anyone would have anticipated when its life began.
Our employees past and present, as well as contractors, local suppliers and businesses, and the broader Latrobe Valley community have all played their part in ensuring that Hazelwood has been a key player in the nation's electricity system over that time.
Victoria should be very proud that Hazelwood has continued operating for more than 50 years, producing the  electricity that has under-pinned the state's economic development and well-being."

The eight chimneys at the power station were demolished on 25 May 2020.
Hazelwood's coal supply would likely have run out around 2009 without the 2005 coal mine extension. This extension, and the associated environmental impacts, have led to significant criticism by environmental groups, and civil disobedience actions (see below).
During 2011 and 2012, the Australian Government considered a Contract for Closure program to complement the Clean Energy Act policy. Hazelwood would likely have been closed under this program had it been pursued. However, this program was scrapped in September 2012 and no plants were closed.
On 3 November 2016, Engie announced that Hazelwood would be closed by the end of March 2017, citing the company's transformational policy of investing solely in low-carbon and renewable energy, as well lower energy prices and oversupply within Victoria.  In May 2016, CEO Isabelle Kocher said the company was reviewing its remaining coal plants one by one and would close those with the most outdated technology.
The largest shareholder in Engie is the French government, which owns 33% of the company. The French Environment Minister said ENGIE would 'disengage' from Hazelwood power station during a documentary that aired on French TV in May 2016. The Minister's response came after receiving a petition about the Hazelwood mine fire from Environment Victoria.
The decommissioning and rehabilitation of the site is estimated to cost at least $743 million, six times the previously predicted amount. This includes $439 million to rehabilitate the mine, and $304 million to demolish the plant and restore the surrounding area. This is in addition to $324 million payable by the owners for redundancy and leave entitlements over the two years after closure, bringing the total cost of closing the plant to almost $1.1 billion.
In the lead up to the closure, there was insecurity around the numbers of Hazelwood workers Engie would keep employing in the decommissioning and rehabilitation processes, the redundancy packages offered, as well as the future of other workers and the local community in and around Morwell directly and indirectly impacted by the closure of the power station.
On 27 March 2017, units #8, #6 and #4 were permanently shut down, followed by units #2, #7 and #5 on 28 March 2017, and units #3 and #1 on 29 March 2017. Unit #1 was shut down last at 4.56pm. It was chosen to be last because Unit 1 was the first Hazelwood generating unit to come into operation on 30 November 1964. Decommissioning of mine and power station plant and equipment was expected to take 12 months.
In a press release on the subject of the closure, Engie in Australia's Chief Executive, Alex Keisser, acknowledged the contributions of past and present Hazelwood employees, and the role the power station has played in the Latrobe Valley. "While Friday will be the end of an era and a very sad day for everyone who has had an involvement with Hazelwood over the past 52 years, it should also be a very proud day," Keisser said. "The decision to close Hazelwood was extremely difficult and was made only after we investigated all options to keep the business open. While it was state-of-the-art when it opened in 1964, it has now reached the end of its productive life, lasting far longer than anyone would have anticipated when its life began. Our employees past and present, as well as contractors, local suppliers and businesses, and the broader Latrobe Valley community have all played their part in ensuring that Hazelwood has been a key player in the nation's electricity system over that time. Victoria should be very proud that Hazelwood has continued operating for more than 50 years, producing the  electricity that has under-pinned the state's economic development and well-being."
The eight chimneys at the power station were demolished on 25 May 2020.
Hazelwood Power Station