Energy minister Chris Bowen speaks with workers at Liddell Power Station ahead of closure

Mr Bowen toured the plant and met with Liddell and workers and management on Wednesday ahead of the historic shutdown.

"Today is about two things- respect and thanks. This power station has kept the lights on for more than 50 years," he said.

"While the engineering is impressive and the technology is important, much more important than that is the workers who have played a part in powering our country for 50 years. I had the opportunity to speak with them and thank them on behalf of the country."

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Liddell was operating at half capacity on Wednesday as plans progressed for its final shutdown.

Only 1 per cent of the world's operating power stations are now older than Liddell.

Liddell-Bayswater general manager Len McLachlan said there were mixed feelings about the plant's final days.

"It's an important asset but they (the workers) also understand that we have been planning it for a long time so I think this is the culmination and celebration but also showing respect for what it has done and what it means to the community and what it means to our people."

Mr Bowen said the Australian Energy Market Operator's advice indicated there would be sufficient renewable capacity online to compensate for the loss of Liddell's peak 2000 megawatts capacity.

"It would have been better if Kurri Kurri (Hunter Power Project) wasn't running 12 months late but it is, but AMO (Australian Energy Market Operator) has has advised me and my state and territory colleagues that the closure of Liddell can be absorbed into the system without any disruption or threats because of all of the dispatchable renewables that have come on in recent times."

"You need to replace places like Liddell before they go out of the system and that is the entire focus of all of the energy work we are doing."

While the closure of Liddell is not expected to have any impact on supply or reliability, Grattan Institute energy program director Tony Wood said he expected its loss would result in an increase in wholesale prices in NSW.

"What we have got is more uncertainty, not just for the coal-fired power stations in terms for potential for outages, but the consequences for gas-fired generators which might need to be run more," Mr Wood told the Financial Review.

"I think they will get something workable [on gas code of conduct released on Wednesday] but it will be ugly."

Hunter-based National Party Senator Ross Cadell said Hunter families were paying up to 58 per cent more for energy under Labor rather than saving $275 per year, as promised.

He said the Nationals supported a lower emissions energy mix, but it must be done in a way that ensures energy security, provides confidence to business and keeps prices low.

"The Labor Government is bulldozing its way to Net Zero in a way that does none of those three things," Senator Cadell said.

In response, Mr Bowen said the former Coalition government had neglected its responsibility to implement an effective clean energy transition.

"You were a member of a government that presided over four gigawatts of dispatchable power leaving the grid and one gigawatt coming on," he said.

"We are cleaning up the mess that was left by Mr Cadell (who was elected to the Senate in 2022) and his colleagues. He voted against the government's energy intervention last December. If it wasn't for that energy intervention power prices would have gone up 50 per cent."

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