The Minister for Energy is considering not funding a new coal fired power station in Victoria, Greens MP Adam Bandt said today.

In Question Time today the Minister confirmed that $100 million promised to the company by the Howard government had not been transferred, and that there were discussions still taking place on "whether or not" the funding would go ahead.

The Victorian EPA recently failed to approve the company's plan, putting the project at risk of not meeting conditions required for the funding.

"It incredible that the government would consider funding a new coal fired power station in the middle of a national debate on pricing pollution and climate change," Mr Bandt said.

"So I am very happy the Minister has left the door open on withdrawing the Howard funding."

"It is clear the HRL coal-fired plant is in deep financial trouble and may not meet the conditions precedent stipulated in the contracts."

"I encourage the Minister to rapidly resolve this issue and make clear the funding will not go ahead."