Alinta Energy is threatening to upset the Federal Government with the early closure of one of Australia's biggest coal-fired power stations.

Alinta chief Jeff Dimery says the low cost of renewables will likely make coal obsolete.

“What I see today in terms of reductions in cost structures for emerging technologies, or existing technologies for that matter, gives me every confidence that despite any policy hiccups or obstacles we see, the commerciality of these technologies will win out,” he said.

He suggested Alinta’s largest coal-fired power station, Loy Yang B, which supplies about 20 per cent of Victoria's energy needs, will close much earlier than its 2048 deadline.

It comes after the company shut down its brown coal-fired Flinders power station in South Australia in 2015, years ahead of its scheduled shut down, again because renewables made it “uncommercial” to run.

“I see the same situation arising in Victoria, precisely when that is I don't have an answer, I do know that right now it is critical to keep the lights on and keep energy affordable that Loy Yang B does operate, but that may well not be the case, whether that is in 10, 15 or 20 years I can't be specific but I know it is going to happen,” Mr Dimery said.

Such a decision would concern the Federal Government, which has fought against closing coal-fired power stations.

Energy Minister Angus Taylor has launched an inquiry into the potential impacts of AGL's closure of the Liddell power station in New South Wales.

The message from Alinta came just days after executives from Santos and Glencore met with Prime Minister Scott Morrison to discuss carbon capture and storage.

“I think it is prudent for a government to explore high-efficiency, low-emissions (HELE) coal-fired power, and carbon capture and storage,” Mr Dimery said.

“As things stand today and looking at the cost curve of renewables I think it's going to find it very difficult to compete, however, I think it is worthwhile continuing to invest in researching those opportunities.”