New power plant for south-west Sydney

Approval has been given to a $200m gas-fired power station in Sydney's south-west despite opposition from local councillors and residents.

The NSW government approved the AGL peaking plant at Leafs Gully, saying there is a need to generate additional electricity capacity to secure the state's energy supply. Construction on the peaking plant is expected to take two years and will create up to 145 operational and construction jobs.

Planning Minister Kristina Keneally said the plant must have a maximum generation capacity of 360 MW and be in operation for no more than 15% of the year.

Any plans to expand the plant will be assessed on how well AGL meets certain benchmarks once the station is operational, she said.

"One of the significant issues raised by the community during the extended, 60-day public exhibition period was that the power stations' capacity might increase after initial approval for 360 megawatts," Keneally said in a statement.

The government has told AGL they must demonstrate acceptable environmental performance for at least 12 months following construction before the government will consider any application to expand the plant.

Other measures will be put in place following concerns raised by residents, including steps to ensure air quality and to protect local water quality. About 170 hectares of vegetation around the power station will also be conserved to protect large tracts of endangered ecological communities and the habitat of the endangered shrub Matted Bush-pea, Keneally said.

Source: AAP NewsWire