A Victorian coal-fired power plant will likely shut down more than a decade sooner than its nominal closure date, as the state fast-tracks its renewable energy transition.

The Victorian Labor government has pledged to re-enter the energy market through a revived State Electricity Commission and set a 95 per cent renewables target for 2035, if it wins the state election next month.

Three coal-fired power stations remain in operation in Victoria’s Latrobe Valley region – Yallourn, Loy Yang A and Loy Yang B.

Yallourn is slated to shut in 2028, while AGL last month announced its Loy Yang A station would close by mid-2035 – 10 years earlier than planned.

Loy Yang B, which generates about 20 per cent of the state’s electricity needs, has a nameplate retirement date of 2047.

Grattan Institute energy program director Tony Wood said it was unlikely to run for that long in light of Labor’s updated renewable and emission reduction goals.

“I would be pretty confident to say that you don’t achieve 95 per cent renewables by 2035 and keep running Loy Yang B,” he told AAP on Friday.

“There’s no mechanism that would cause it to close earlier. But if the government goes ahead and does things which would drive that level of renewables, it would close.”

Melbourne Energy Institute’s Pierluigi Mancarella agrees but argues it is more an issue of economics, predicting coal-fired plants will become less financially viable as more renewable energy comes online.

“This would have happened anyway because coal plants are increasingly not performing from an economic perspective in the market,” Mr Mancarella told AAP.

Loy Yang B’s owner Alinta Energy said it had taken strong steps to prepare for the transition but has demanded more detail.

“We need to understand more about how the government intends to manage the cost of the expedited transition, protect communities and workers, and support us to invest in the replacement generation required to keep the lights on in the state,” Alinta CEO Jeff Dimery said.

Australian Energy Council chief executive Sarah McNamara said a move toward earlier closure would destabilise future investment plans,.

The Victorian Farmers Federation warned it could lead to disastrous consequences for farming communities and food security.

Meanwhile, the Victorian coalition has pledged to cap return airfares between Mildura and Melbourne at $100 for locals if elected.

With just a few weeks left until early voting opens for the November 26 poll, Opposition Leader Matthew Guy has floated a $23 million trial to cap return airfares between Melbourne and Mildura at $100.

Residents living within 150 kilometres of Mildura would be eligible for two $100 return flights to the state’s capital over the next two years under the proposal.

Mr Guy said the cap would mean Mildura residents spend less time on the road, with a return car trip to Melbourne taking at least 12 hours.

Mildura is viewed as a must-win for coalition next month, with local police sergeant Paul Matheson running for the Liberals and former Swan Hill mayor Jade Benham the Nationals’ pick.

The Nationals lost the seat to independent MP Ali Cupper in 2018 by 253 votes after preferences, making it one of the most marginal in the state.

– AAP