China-based firm Shenhua has withdrawn its bid for New South Wales (NSW) electricity generating company Macquarie Generation (MacGen), according to a report by The Australian Financial Review (AFR). This leaves the NSW government with just three bidders for the state-owned firm, wrote Business Spectator.

AFR reports that only AGL Energy, Marubent Corporation, and ERM Power are left for the MacGen bidding, the report said.

The NSW generator is home to power facilities in Liddell and Bayswater. Treasurer Michael Baird has expressed his hopes for the firm to fetch up to $2 billion. However, bidders have been hoping for a price that is closer to $1 billion, the report detailed.

MacGen represents around one-fourth of the NSW state's power generation. The company is one of the three other power production firms that the government plans to state. The NSW government hopes to raise $3 billion from the sales of these companies for the construction of roads, schools, hospitals, and other projects, Business Spectator reported.