The country’s biggest energy user says the federal government’s $600 million gas-fired power plant in NSW’s Hunter Valley is “absolutely” needed to keep the lights on in the state, even as experts maintain it is not required to either keep supply reliable or power prices affordable.

The 660 megawatt Hunter Power Project announced by federal Energy Minister Angus Taylor may still be followed by yet another gas power plant in NSW as the Andrew Forrest-backed Port Kembla venture said it still sees an attractive business case for its gas-hydrogen project in Port Kembla.