Alcoa secures power for Vic smelter

Alcoa's struggling Victorian aluminium smelter is set to fully reopen after the company inked a four-year power supply deal with AGL.

Alcoa has secured a power source for its struggling Victorian aluminium smelter. (AAP)

Alcoa has secured a power source for its struggling Victorian aluminium smelter after months of uncertainty about the facility's future.

Alcoa's Portland smelter has been operating at 30 per cent capacity after a power cut damaged equipment, while its future power source was uncertain because of the closure of Hazelwood coal-fired power station.

However, AGL announced on Friday it had signed a four-year deal to supply the smelter with up to 510MW of power, which is the equivalent of 10 per cent of Victoria's total electricity load.

"AGL is very pleased, as one of Victoria's electricity suppliers, it can play a part in helping to secure the future of the Portland Smelter and the community that it supports," AGL executive general manager of energy markets Stephen Mikkelsen said on Friday.

"All parties involved have worked exceptionally hard to achieve this outcome."

AGL said the contract would be supplied with a mix of both thermal and renewable power.