Munmorah Power Station, the dirtiest coal-fired power station in New South Wales, has been permanently closed.

Although the power station's operator, Delta Electricity, said that the introduction of the carbon price was the final factor in its closure, Munmorah has not been operated for two years because of high operating costs and reduced demand for electricity.

When it was in operation, Munmorah Power Station had a capacity of 1.4 gigawatts and emitted an estimated 4.25 million tonnes of greenhouse gases a year.