The NSW Government has approved a $200 million upgrade of the Bayswater Power Station in the NSW Hunter Region, to ensure the station’s reliable operation until its scheduled closure in 2035.

Bayswater’s 2,640MW of power is a significant contributor to the state’s energy supply. It is Australia’s second largest coal-fired power station, producing enough to energy to power two million homes.

When Bayswater power station was constructed in 1984, peak NSW electricity demand was more than 7,000MW but this has now doubled to more than 14,000MW.

The upgrade project has been declared Critical State Significant Infrastructure and involves replacing four turbines over a four-year period prior to the closure of nearby Liddell power station in 2022.

The Department of Planning and Environment received 54 submissions about the upgrade (including five from government), with the chief concern being air quality.

According to the Department, the upgrade can be carried out with minor environmental impact, subject to conditions.