Australia's NSW government receives four bids for power stations

The Government of New South Wales, Australia, has received four bids for Delta Coastal, which includes two power stations that generate 12% of the state's power.

According to sources, Origin Energy, China's Shenhua Energy, Japan’s Marubeni and ASX-listed ERM Power, are involved in the process and have submitted indicative offers.

Delta Coastal plants are the following:

• Colongra Power Station is a low emission gas fuelled plant on the Central Coast, near the old Munmorah Power Station. It has four gas turbines and a combined capacity of 667 MW. It operates during times of high peak demand such as very hot and cold days.

• Vales Point Power Station was built in the 1960s as a four-unit station. The power station is at the southern end of Lake Macquarie, about 35 km south of Newcastle. The original four units were decommissioned in 1989. Vales Point now operates two 660 MW generating units.

Goldman Sachs is advising the NSW government in the sale process. The firm is preparing a shortlist for final negotiations.

NSW government aims to close the transaction for about A$800 million.

Earlier this year the state sold the owner of another two power stations, Macquarie Generation, to energy retailer AGL Energy Ltd for A$1.5 billion