AGL will invest $200 million to upgrade the Bayswater coal-fired power station in NSW to replace the power it will lose when it closes the Liddell power station.

The upgrade will add another 100 megawatts in capacity to the Bayswater power station by improving its operational efficiency.

The Bayswater upgrade is designed to replace power lost after the shutdown of the Liddell power station.

Bayswater is AGL’s largest coal-fired power station and is currently capable of producing 2640 megawatts.

AGL first flagged its intention to upgrade the power station as part of its plan to replace the 2000 megawatts that will be removed from the system when the Liddell coal-fired power station – which is located less than five kilometres from Bayswater – closes down in 2022.