State and federal governments have announced funding for infrastructure and investment projects, job training and emotional and financial support for employees affected by the closure of the Hazelwood coal-fired power station in Victoria.
French majority owner of the power station, Engie, announced it is no longer economically viable to operate the station and it will close by March 31 next year.
The closure forces 750 people out of work in an area already struggling with unemployment.
Energy and Environment Minister Josh Frydenburg has told the ABC the closure will affect electricity supply across the country.
"Hazelwood made up about four per cent of supply across the national electricity market, helping supply power into South Australia, into Tasmania and also into New South Wales. The best advice to me comes from the Australian energy market operator and they have said that the reliability of the system will be maintained. That being said, Victoria will now go from being a net energy exporter to becoming a net energy importer."
Federal government support includes a $43 million assistance package, including $20 million for infrastructure projects and $20 million for Latrobe Valley to become the country's 10th regional jobs and investment project.
Another $3 million will go to job assistance, retraining and financial services for affected workers.
Premier Daniel Andrews has also announced a $226 million support package in addition to the federal support promised.
Mr Andrews hopes to be able to work with the federal government in the best interests of those affected.
"We're very keen not to be playing politics with this but instead working together, putting La Trobe Valley families ahead of any political game we may play. I just want to say to you we've done the work to be ready today, but you can't make announcements following a company's decision until they have made that decision. We are responding the decision that Engie's made."
Prime Minister Malcolm Turnbull says it's a very tough time for the La Trobe valley.
"This has been foreshadowed for some time and we have established, some time ago, a ministerial task group within the government to ensure that we provide the support that the community needs to ensure that there are jobs and opportunities for the workers that will lose their jobs as a result of this power station closing."
Engie Australia chief executive Alex Keisser says the company is committed to fully supporting workers, including 450 direct workers and 300 contractors.
It has set aside $150 million for entitlements - an average of $330,000 per worker.
Mr Keisser says the decision has not been influenced by the state or federal governments.
"This is a commercial decision we have taken. Today the prices of electricity are very low. In a situation where Hazelwood is more than 50 years old and the least economic plant to run in the Latrobe Valley, so this decision has been based on the economic grounds of the current situation of Hazelwood."
Some 250 workers will still be needed for rehabilitation works at the mine and power station site up to 2023, with existing workers given priority.
The federal government has set up a ministerial committee to coordinate its response while a joint Commonwealth and state task force will oversee efforts.
