AGL to shell out $200m to upgrade coal-fired Bayswater Power Station

The facility will have an additional 100MW capacity after the update.

AGL will spend more than $200m and create 90 jobs during work to upgrade and maintain the coalfired Bayswater Power Station in Muswellbrook.

The upgrade is among the investments being made by AGL to replace the 1000 megawatt capacity shortfall AEMO identified could follow the repurposing of Liddell plant in 2022.

The Bayswater upgrade will improve the power station’s capacity and efficiency, providing enough energy for up to 100,000 homes - increasing electricity supply without increasing coal consumption or emissions. AGL Macquarie General Manager Kate Coates, NSW Parliamentary Secretary for the Hunter Scot MacDonald and Member for Upper Hunter Michael Johnsen today announced that the project will now be assessed by the Department of Planning & Environment.

“By replacing the original turbines with modern turbine technology, Bayswater will have an additional 100MW capacity, which is enough energy for up to 100,000 average Australian homes,” Coates said. “This extra electricity supply will be generated without the need for additional coal use, and therefore without additional emissions.

Subject to approvals, the upgrade works are expected to commence by February 2019 and span four years, with Bayswater’s four turbine sets proposed to be replaced during planned unit maintenance outages. “This will ensure all Bayswater’s upgraded turbines are fully operational by 2022. The project will also create 90 jobs for the duration of each turbine replacement,” she said.

Importantly, the investment of more than $200m over the next four years includes ongoing outage capital expenditure to maintain reliability. This is in line with previously communicated capital spending to maintain performance for the working life of the plant.

AGL has recently completed a competitive tender process for the works and has contracted Toshiba as the principal contractor for the project.