The Victorian Minister for Energy and Resources says a recent Federal Government report paints a dire picture for the Latrobe Valley.

The report says, based on carbon pricing modelling, brown coal will play no role in the country's energy production by 2050 - it will become too expensive to generate power because of the carbon price.

It also says the Victorian Government must invest in low-emissions energy technology or be forced to import its electricity needs from interstate.

Minister Michael O'Brien says the report's findings are based on a carbon price modelling that may not exist if the Federal Coalition is voted in this year.

"The Latrobe Valley, Gippsland, we are the energy hub of this country but if you take brown coal out of the equation, we become beggars at the table, we become dependent on other states to produce our electricity," he said.

"We don't want want to see that happen as a State Government, that's why we're investing in the carbon capture and storage technology, that's why we're investing in the ALDP [Advanced Lignite Demonstration Program]."

Mr O'Brien says he will not dismiss the report's findings but they will be irrelevant if Labor loses this year's election.

"That conclusion was based on a particular carbon price, now obviously the whole future of the current Federal Government carbon tax is going to be very much an issue at the federal election and the electorate will make their decision on whether they want to keep it or not," he said.


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