Delta Electricity’s Brown Mountain Power Station and Cochrane Dam have been sold to Cochrane Dam Pty Ltd, a wholly owned subsidiary of Hydro Power.

Treasurer Gladys Berejiklian said the transaction was the final step in removing the State from the volatile energy generation sector.

“The NSW Government’s power station divestments have generated $870 million for Restart NSW while also terminating $1.2 billion of debt and $2 billion of future liabilities, significantly improving the State’s financial position,” Ms Berejiklian said.

This transaction follows the sale of other State-owned generators, including Macquarie Generation and Delta Electricity power stations, Eraring Energy and renewable energy assets owned by Green State Power.

Brown Mountain Hydro Power Station is located on the Bemboka River and is connected to the 66kV Essential Energy transmission line between Cooma and Bega. Brown Mountain is a two-unit hydro power station, with a total capacity of 4.6 MW generated from the water released from Rutherford Creek and Cochrane Dam.

Brown Mountain Hydro Power Station and Cochrane Dam will continue to operate once the transaction is finalised. Local water release agreements will remain in place and will not be impacted. Following completion of the transaction sufficient water will remain in Cochrane Dam to ensure the new operator will achieve the 500ML drought reserve, required annually by 1 October under the Water Sharing Plan.

Hydro Power, an Australian company based in regional NSW, has owned and operated Wyangala Dam hydro power station since 1991.