MUNMORAH power station is to be permanently shut after 45 years of operation, and Delta Electricity says the carbon tax is partly to blame.
Munmorah has not produced electricity since August 2010 but has been on standby since then, allowing it to be restarted if demand or market conditions warranted.
Delta chief executive Greg Everett said falling energy demand had created an excess of power in NSW and Munmorah’s place in the market had been overtaken by newer and more efficient sources of electricity.
‘‘The station’s ageing infrastructure and high maintenance costs mean that it is not economically viable to operate,’’ Mr Everett said.
‘‘The carbon tax further erodes its viability.’’
More details will be available in tomorrow’s Newcastle Herald.