Bayswater power station will be running at full capacity in an effort to meet extreme demand for power during forecast heatwaves on Thursday and Saturday.
The Australian Energy Market Operator is bracing for a supply squeeze and has issued a level-two "lack of reserve" warning for Thursday afternoon and evening, when millions of people will arrive home to power up their air conditioners.
The supply warning signals a potential need to call on emergency power reserves.
Despite the surge in renewable energy uptake, the 2600 megawatt Bayswater coal-fired generator and the adjoining 2000 megawatt Liddell generator may be critical to avoiding blackouts.
"As part of our summer readiness we have been working hard to ensure that Unit 4 at our Bayswater Power Station was ready to return to service, which it did last week following a major maintenance outage and turbine upgrade," an AGL spokeswoman said.
"We will continue to do our best to provide a reliable service during the heatwave conditions and will maximise the availability of our units across AGL Macquarie to achieve this."
The work is in addition to the $150 million investment the company has made in maintaining key infrastructure in readiness for summer.
A similar scenario is unfolding in Victoria where AGL's 2200 megawatt Loy Yang A coal-fired power plant, which has been offline for months due to repairs, is due to start-up again on Thursday.
Site emergency management teams at Bayswater and Liddell are also prepared for the extreme bushfire risk in the region.
"Site emergency management teams are prepared and equipment has been checked. Inspections for possible fuel or ignition sources have been conducted and we are in contact with local emergency services," the spokeswoman said.
Risk management includes watering of roads around the site, no use of hot tools on site, road and fire trail clearing plus dust suppression, site patrols and fire monitoring resources activated and additional fire-fighting resources mobilised and placed strategically across site, such as at coal stockpiles to protect fuel supplies
"AGL is committed to doing all it can to support both its workforce and customers who may be affected by the bushfires," the spokeswoman said.
"We know the risk across the state is high and our thoughts are with those who are on the front line, as well as with those families who have already been so deeply impacted by these devastating fires across NSW, QLD and South Australia."
