THE Redbank Power Station, a 151-megawatt facility near Singleton, will close immediately with the majority of the plant's 39 employees finishing work on Friday with full entitlements.
In October last year receivers were appointed to the Redbank project, which had two main contracts for purchasing coal and an electricity hedge agreement.
As of Thursday, the power station had no ongoing fuel supply or electricity pricing agreement.
The plant's remaining assets, including the turbine, generator and plant and equipment will be sold, receivers KordaMentha have said.
A limited number of employees would remain at Redbank to help with decommissioning and other tasks.
KordaMentha will continue payment of receivership related trade creditors and suppliers.