Ageing Infrastructure Drives Up Energy Bills at Bayswater Power Station

Bayswater Power Station in NSW celebrates 40 years, but its future is uncertain as it is scheduled to close in 2033. The site has experienced rising maintenance costs and unplanned outages, contributing to increasing power bills. The power station's aging infrastructure is partly to blame, but the industry's transition to cleaner energy sources is also a factor. Despite this, the staff remains proud of their role in powering the state.

Bayswater Power Station, located near Muswellbrook in New South Wales, has reached a significant milestone as it celebrates its 40th anniversary. Over the past four decades, the station has supplied approximately 20% of the state's electricity, making it a critical component of the NSW grid [1].

As Bayswater approaches its 50th year, it is scheduled to power down in 2033. The station's aging infrastructure has led to increased maintenance costs and unplanned outages, contributing to rising power prices. NSW customers are bracing for power price rises of around 8 to 10% from July 1 [1].

The station's transformation lead, Shaun Green, acknowledges the challenges ahead. "If you go back a decade, we had no idea that it would look like this," he said. "We thought that Bayswater would probably be here forever." However, he remains optimistic about the industry's future, emphasizing the exciting opportunities in transitioning out of coal [1].

Despite the move away from coal-fired power, the staff at Bayswater maintains immense pride in their work. Chris D'Hotman, who started as a mechanical engineer and is now the head of generation and revenue, said, "We do it because we know what we're doing is powering the economy" [1].

The station's Equivalent Availability Factor (EAF) is currently at 80%, indicating a decline in availability as the plant ages. AGL, the station's owner, continues to invest heavily in maintenance and planned outages to ensure reliability until the end of its scheduled life [3].

The transition to renewable energy sources is well underway. Plans for a solar panel manufacturing site at nearby Liddell Power Station and AGL's Hunter Energy Hub, which includes solar and wind projects along with battery storage, are emerging to replace Bayswater [1].

The plant's closure is expected to be bittersweet, with AGL preparing individual transition plans for each of Bayswater's 420 employees. Some will retire, while others may need to transition into new careers in the renewable energy sector [3].

References:
[1] https://www.abc.net.au/news/2025-06-13/bayswater-coal-fired-power-station-at-40-years/105403800
[2] https://www.facebook.com/ABCNewcastle/posts/our-abc-upper-hunter-team-spent-the-morning-at-bayswater-power-station-for-its-4/1249590120169332/
[3] https://www.newcastleherald.com.au/story/8988574/bayswater-power-station-has-been-powering-nsw-for-40-years/