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Tallawarra B power station to be built

4 May 2021

EnergyAustralia’s commitment to build a new gas-fired power station in New South Wales is welcome news for households and businesses.

The 316 megawatt Tallawarra B open cycle gas turbine will help ensure New South Wales energy consumers have continued access to affordable and reliable power when the Liddell Power Station closes in 2023.

The project will also provide an economic boost for the Illawarra region, which will benefit from the new jobs created. EnergyAustralia estimates that up to 250 jobs will be created during the construction phase, while many more will be supported by the plant’s ongoing operations.

The gas project has received a funding commitment of up to $78 million from the NSW Berejiklian Government to help deliver the project to financial close. The Morrison Government will also provide $5 million to make the project hydrogen-ready.

Minister for Energy and Emissions Reduction Angus Taylor said the new dispatchable capacity from Tallawarra B will help secure the state’s electricity supply and keep prices low.

“This is a win for households and businesses across New South Wales and the broader National Electricity Market, particularly our local manufacturers who will benefit from additional dispatchable generation,” Minister Taylor said.

“With the impending closure of Liddell, the Government called on the private sector to step up and outline firm investment plans to provide up to 1,000 megawatts of dispatchable electricity generation to avoid unnecessary price hikes and reliability risks.

“EnergyAustralia’s commitment is pleasing and will be the first dispatchable energy generation project to be built in NSW in over a decade.

“I am also pleased the NSW Government and EnergyAustralia came to a workable solution to see this important project reach financial close. 

“Affordable, reliable and secure power is crucial to ensuring families, businesses and job-creating industries in New South Wales can grow and prosper, and this project will help make that happen.”

Tallawarra B will provide a reliable source of dispatchable generation, necessary to ensure security of supply in the context of increasing amounts of variable renewable energy coming into the grid.

Media contact:

Minister Taylor's office: 02 6277 7120