Australia’s largest coal-fired power station has had its closure date delayed by another two years.
The Eraring Power Station in Newcastle, NSW, was initially scheduled to close in 2025. A deal with the State Government then pushed its closure back to 2027.
On Tuesday, operator Origin Energy said Eraring would be kept open until 2029.
The company said the new closing date will not affect its goal of reaching net zero emissions by 2050.
Closure
Eraring Power Station is a black coal-fired plant which Origin says generates up to 25% of NSW’s electricity.
In 2024, the NSW Government struck a deal with Origin to delay the station’s planned 2025 closure until August 2027.
Under the agreement, the State Government committed up to $450 million in compensation to keep the plant operating until 2027.
The deal also allowed the Government to claim up to $80 million of Eraring’s profits over the two year period, if it were profitable.
The agreement came days after the Australian Energy Market Operator identified Eraring’s planned 2025 closure as a factor that could worsen energy supply risks.
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At the time, NSW Environment Minister Penny Sharpe said keeping Eraring open would “ensure the lights stay on” and help the state avoid energy supply uncertainty.
She added the Government believed the move would reduce the risk of blackouts and power price increases in the years ahead.
Eraring
In a statement on Tuesday, Origin Energy said the decision to delay the closure again prioritises providing “reliable power to NSW households and businesses”.
Origin CEO Frank Calabria said the extension would allow “more time for renewables, storage and transmission projects to be delivered”.
Once it shuts, the site will house a large-scale battery for the National Electricity Market, charged by solar energy. The battery project is expected to fully connect to the grid in early 2027.
Politics
April 2029 is the latest the station can close to ensure the NSW Government remains on track to meet its 50% emissions reduction target by 2030.
NSW Energy and Environment Minister Penny Sharpe said the deal with Origin will not be extended, and has “not cost NSW taxpayers a single dollar”.
The Opposition called the announcement “a reprieve for the state’s energy security” following “dire warnings”.
