Macquarie Generation

Macquarie Generation was an electricity-generation company created by the Government of New South Wales during the restructuring of the state's electricity industry. Established in 1996 under the State Owned Corporations Act 1989 and the Energy Services Corporation Act 1995, it emerged from the division of the Electricity Commission of New South Wales. Its principal role was to own and operate large-scale generating assets and sell electricity into Australia's National Electricity Market, including through contracted arrangements. The business developed a predominantly thermal generation portfolio in the Hunter region of New South Wales. Its major assets included Bayswater Power Station, with a stated generating capacity of 2,640 megawatts, and Liddell Power Station, with a stated capacity of 2,000 megawatts. The portfolio also included the 50-megawatt Hunter Valley Gas Turbines and the Liddell Solar Thermal Project. This combination gave Macquarie Generation a significant position in the New South Wales electricity system, while the solar thermal project represented an early effort to explore renewable generation alongside its coal- and gas-based assets. The company's ownership changed fundamentally in September 2014, when the New South Wales government sold Macquarie Generation to AGL Energy for A$1.5 billion. Following the transaction, the business became associated with AGL's generation operations and is now described as trading as AGL Macquarie. The operation has been reported as supplying approximately 12 percent of the National Electricity Market and about 30 percent of New South Wales electricity demand, although these proportions are time-dependent and should not be treated as current without a dated market source. Macquarie Generation's history reflects the continuing importance of large thermal power stations in Australia's electricity market, as well as the policy and ownership changes affecting the sector. Its assets have been used to provide electricity for sale under contract and through market operations. At the same time, the portfolio has been affected by the transition away from older coal-fired generation. Liddell Power Station closed in April 2023, marking a major change in the asset base associated with the Macquarie Generation business. The Macquarie Generation name is therefore best understood as the historical identity of a New South Wales generation business rather than as a standalone consumer-facing product brand. Its continuing operational identity is linked to AGL Macquarie and AGL Energy, while its historical significance comes from the creation of a state-owned generator, the 2014 privatization transaction, the scale of its Hunter-region assets, and the later retirement of Liddell.

Macquarie Generation was formed in 1996 as part of the reorganization of New South Wales's electricity industry. The company was established by the state government under the State Owned Corporations Act 1989 and the Energy Services Corporation Act 1995. Its creation followed the breakup of the Electricity Commission of New South Wales, separating electricity-generation assets from other parts of the former vertically integrated public electricity structure. The resulting business was designed as a major generator serving the New South Wales electricity system and participating in Australia's National Electricity Market. Its portfolio was concentrated in the Hunter region and was predominantly based on thermal coal generation. The principal stations were Bayswater Power Station and Liddell Power Station. Bayswater was listed with a capacity of 2,640 megawatts, while Liddell was listed with a capacity of 2,000 megawatts. The portfolio also included the 50-megawatt Hunter Valley Gas Turbines, which provided a different form of generating capability from the large coal stations. Macquarie Generation's asset base was not limited entirely to conventional thermal generation. It also included the Liddell Solar Thermal Project, reflecting an early attempt to develop solar thermal power in connection with the company's generation activities. This initiative was significant because it indicated an interest in renewable generation even while the business remained dominated by coal-fired assets. The ownership of Macquarie Generation changed in September 2014. The New South Wales government completed a sale of the company to AGL Energy for A$1.5 billion. The transaction transferred the major generating assets to AGL and integrated the business into AGL's broader electricity-generation portfolio. After the acquisition, the operation became known as or traded as AGL Macquarie. In the period described by reference material, AGL Macquarie was reported to account for approximately 12 percent of the National Electricity Market and approximately 30 percent of the New South Wales electricity market. These figures demonstrate the strategic importance of its assets, although market shares vary with demand, plant availability, competing generation, and the period measured. The business generated electricity for sale under contract as well as for participation in the electricity market. The later history of the portfolio has been shaped by Australia's energy transition and the retirement of older coal-fired capacity. Liddell Power Station closed in April 2023. That closure reduced the generating assets associated with the historical Macquarie Generation portfolio and underscored the changing role of coal generation in the Australian electricity system. The Macquarie Generation name consequently represents a historical corporate and asset identity whose continuing operational association is through AGL Macquarie and AGL Energy.

• 2023

  Liddell Power Station closes

  [1]Macquarie Generationen.wikipedia.org

  Liddell Power Station closed in April 2023 after being part of the Macquarie Generation asset portfolio.

• 2014

  AGL Energy acquires Macquarie Generation

  [1]Macquarie Generationen.wikipedia.org

  The New South Wales government sold Macquarie Generation to AGL Energy for A$1.5 billion, transferring its principal generating assets to the private energy company.

• 1996

  Macquarie Generation is established

  [1]Macquarie Generationen.wikipedia.org

  The New South Wales government established Macquarie Generation during the breakup of the Electricity Commission of New South Wales.

A large-scale New South Wales electricity generator focused historically on thermal generation, with additional gas-turbine capacity and early solar-thermal development.

• Coal-fired power generation

  Bayswater Power Station

  Bayswater Power Station was one of Macquarie Generation's principal generating sites and was listed with a capacity of 2,640 megawatts. It formed part of the company's predominantly thermal generation portfolio in New South Wales and was transferred to AGL Energy through the 2014 acquisition.

• Coal-fired power generation

  Liddell Power Station

  Liddell Power Station was a major Macquarie Generation asset with a stated capacity of 2,000 megawatts. It was included in the 2014 sale to AGL Energy and closed in April 2023, making it a significant retired component of the historical generation portfolio.

• Gas turbine electricity generation

  Hunter Valley Gas Turbines

  The Hunter Valley Gas Turbines were part of Macquarie Generation's generation portfolio and were listed with a capacity of 50 megawatts. They provided gas-turbine capacity alongside the company's much larger thermal power stations.

• Solar thermal power development

  Liddell Solar Thermal Project

  The Liddell Solar Thermal Project was included among Macquarie Generation's assets and reflected an early effort by the company to develop solar thermal generation. The supplied reference identifies it as a project but does not provide enough information to establish its commercial operating status or output.

• 2023

  Closure of Liddell Power StationGeneration change

  Background

  Liddell was a major station in the historical Macquarie Generation portfolio and formed part of the wider transition affecting older coal-fired generation in Australia.

  Action taken

  Liddell Power Station ceased operation in April 2023.

  Aftermath

  The closure reduced the generating capacity associated with the historical Macquarie Generation asset base.

  Source

• 2014

  Sale of Macquarie Generation to AGL EnergyM&A

  Background

  The New South Wales government chose to sell the state-owned generation company as part of the changing ownership structure of the electricity sector.

  Action taken

  AGL Energy acquired Macquarie Generation and its listed generating assets for A$1.5 billion in September 2014.

  Aftermath

  The business became associated with AGL's generation operations and subsequently traded as AGL Macquarie.

  Acquisition price. A$1.5 billion (September 2014)

  Source

• 2023

  Liddell Power Station closes[1]Macquarie Generationen.wikipedia.org

  Other

  Liddell Power Station, one of the major generating assets associated with Macquarie Generation, ceased operation in April 2023.

• 2014

  New South Wales sells Macquarie Generation to AGL Energy[1]Macquarie Generationen.wikipedia.org

  M&A

  The New South Wales government sold Macquarie Generation and its major generating assets to AGL Energy for A$1.5 billion.

1. 1Macquarie Generationen.wikipedia.org