Energy giant AGL says it will bring forward the closure of the Loy Yang A coal plant in Victoria, but will still run it until the 2040s.

AGL is in the process of splitting into two companies, and as part of the move it has revealed plans to close Loy Yang A in the Latrobe Valley between 2040 and 2045.

It was originally scheduled to close in 2048.

The company also gave an update on the closure of the Bayswater plant in NSW, which was originally slated for 2035.

AGL says it is now aiming to close the plant sometime between 2030 and 2033.

The company is splitting in two - forming AGL Australia and Accel Energy.

Coal-fired power stations will be housed in Accel Energy, which will also own 15 per cent AGL Energy.

AGL's new structure has been described as a form of “greenwashing”, seeking to separate high-polluting assets from its retail business.