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Bayswater Power Station Turbine Efficiency Upgrade Project AGL Macquarie Pty Limited State Significant Infrastructure Application Report IA176100 01 | Final

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Bayswater Power Station Turbine Efficiency Upgrade Project AGL Macquarie Pty Limited State Significant Infrastructure Application Report IA176100 01 | Final Bayswater Power Station Turbine Efficiency Upgrade Project AGL Macquarie Pty Limited State Significant Infrastructure Application Report IA176100_01 | Final 27 March 2017 S tate S ignific ant I nfr astr uctur e A pplic ation Repo rt A GL Mac qua rie State Significant Infrastructure Application Report Bayswater Power Station Turbine Efficiency Upgrade Project Project No: IA176100 Document Title: State Significant Infrastructure Application Report Document No.: IA176100_01 Revision: Final Date: 27 March 2018 Client Name: AGL Macquarie Pty Limited Client No: Client Reference Project Manager: Thomas Muddle Author: Thomas Muddle and Matt Davies File Name: J:\IE\Projects\04_Eastern\IA176100\21 Deliverables\IA176100_AGL_Bayswater Turbine Replacement Project_PEA_Final.docx Jacobs Group (Australia) Pty Limited ABN 37 001 024 095 710 Hunter Street Newcastle West NSW 2302 Australia PO Box 2147 Dangar NSW 2309 Australia T +61 2 4979 2600 F +61 2 4979 2666 www.jacobs.com © Copyright 2018 Jacobs Group (Australia) Pty Limited. The concepts and information contained in this document are the property of Jacobs. Use or copying of this document in whole or in part without the written permission of Jacobs constitutes an infringement of copyright. Limitation: This document has been prepared on behalf of, and for the exclusive use of Jacobs’ client, and is subject to, and issued in accordance with, the provisions of the contract between Jacobs and the client. Jacobs accepts no liability or responsibility whatsoever for, or in respect of, any use of, or reliance upon, this document by any third party. Document history and status Revision Date Description By Review Approved 00 1/03/2018 Draft for client review Thomas Muddle Kim Collings 1/03/2018 01 27/03/2018 Final Thomas Muddle Mike Luger 27/03/2018 IA176100_01 i State Significant Infrastructure Application Report Contents 1. Introduction ............................................................................................................................... 1 1.1 Background................................................................................................................................. 1 1.2 Project Summary ........................................................................................................................ 1 1.3 Proponent ................................................................................................................................... 2 1.4 Project Need ............................................................................................................................... 2 1.5 Planning and Assessment Process ............................................................................................. 2 1.6 Purpose of Report ....................................................................................................................... 3 2. Project Context ......................................................................................................................... 4 2.1 Existing Infrastructure - Bayswater Power Station Operations...................................................... 4 2.2 Site and Surrounds ..................................................................................................................... 5 3. Project Description ................................................................................................................... 8 3.1 The Project ................................................................................................................................. 8 3.2 Turbine Installation Works ........................................................................................................... 8 3.3 Operational Implications .............................................................................................................. 9 4. Justification and Alternatives................................................................................................. 10 4.1 Consideration of Project Need ................................................................................................... 10 4.2 Consideration of Project Opportunity ......................................................................................... 10 4.3 Consideration of Options ........................................................................................................... 10 4.4 Justification of Recommended Option ....................................................................................... 10 5. Planning framework and strategic context ............................................................................ 12 5.1 Strategic Context ...................................................................................................................... 12 5.1.1 The Existing National Electricity Market ..................................................................................... 12 5.1.2 The Proposed National Energy Guarantee ................................................................................ 13 5.1.3 AGL Energy Strategic Objectives .............................................................................................. 13 5.2 Statutory Context ...................................................................................................................... 14 5.2.1 Critical State Significant Infrastructure ....................................................................................... 14 5.2.2 Zoning ...................................................................................................................................... 14 5.2.3 Bayswater Power Station Existing Approvals ............................................................................. 15 5.2.4 Environmental Protection Licence ............................................................................................. 15 6. Stakeholder Engagement ....................................................................................................... 16 6.1 Engagement to Date ................................................................................................................. 16 6.2 Proposed Engagement.............................................................................................................. 16 6.3 Anticipated Stakeholder Issues ................................................................................................. 16 7. Consideration of Environmental Impacts .............................................................................. 18 7.1 Air Quality and Greenhouse Gas ............................................................................................... 18 7.1.1 Preliminary Air Quality Assessment ........................................................................................... 18 7.1.2 Preliminary GHG Assessment ................................................................................................... 20 7.2 Traffic ....................................................................................................................................... 22 IA176100_01 ii State Significant Infrastructure Application Report 7.3 Noise ........................................................................................................................................ 23 7.4 Water ........................................................................................................................................ 23 7.5 Waste ....................................................................................................................................... 24 7.6 Biodiversity ............................................................................................................................... 24 7.7 Heritage .................................................................................................................................... 24 7.8 Visual ........................................................................................................................................ 24 7.9 Social and Economic Impacts.................................................................................................... 24 8. Summary and Conclusions .................................................................................................... 26 List of Figures Figure 2.1 : Land tenure and land use context ....................................................................................... 6 Figure 2.2 : Project Location ................................................................................................................. 7 IA176100_01 iii State Significant Infrastructure Application Report 1. Introduction 1.1 Background AGL Macquarie Pty Limited (AGL Macquarie) owns and operates the Bayswater Power Station. Bayswater Power Station (Bayswater) was commissioned in 1985. Over recent years Bayswater has produced approximately 15,000 Gigawatt hours (GWh) of electricity a year, enough to power approximately two million average Australian homes. Bayswater generates electricity using four generating units. AGL Macquarie proposes to replace the turbines within each of the generating units to best ensure the continued safe, reliable and efficient operation of Bayswater until its scheduled closure in 2035, and ensure that all new turbines are fully operational prior to the closure of Liddell Power Station (Liddell) in 2022. 1.2 Project Summary The existing four generating units at Bayswater currently have a 660-Megawatt (MW) continuous maximum rating
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