Eraring Power Station in NSW is to remain open for two more years, owners Origin Energy says.
The coal-powered station was due to close on August 19, 2027, but will now close on April 30, 2029, Origin told the NSW Government, Australian Stock Exchange (ASX) and Australian Energy Market Operator.
In a statement to the ASX, company CEO Frank Calabria says more time is needed to ensure the renewable energy infrastructure is there to supply NSW’s power needs.
“Good progress is being made on the delivery of new energy infrastructure, including major transmission works and projects like our large-scale battery at Eraring,” he says.
“But it has become clear Eraring Power Station will need to run for longer to support (a) secure and stable power supply.”
He says the decision gives more time for renewable infrastructure projects to be built.
Calabria also says Origin “does not intend” to spend anymore on major maintenance overhauls of the plant, located on the banks of Lake Macquarie.
He also says a $5 million fund set up to support communities affected by the closure will now run to 2032; he says the fund has already spent nearly $1.5m on 47 projects.
He told the ASX that Origin Energy’s 700MW partially-operational battery will become fully operational early next year.
ERARING REACTION: NSW GOVT
NSW Environment Minister Penny Sharpe says “the decision gives certainty to workers, the market and consumers” statewide.
“Current energy security projections show NSW is expected to have sufficient energy supply when Eraring closes in 2029 thanks to new renewable generation and storage coming online,” she says.
“NSW is making real progress replacing ageing coal-fired power stations; since the election, we increased the renewable energy capacity in operation by almost 70%. That’s equivalent to Eraring’s capacity.”
CLIMATE MEDIA CENTRE
The non-profit Climate Media Centre says the decision is a warning sign that renewable infrastructure and storage haven’t been built fast enough.
Climate councillor and energy expert, Associate Professor Joel Gilmore says that every year an aged power plant’s life is extended increase the risks.
“The evidence is clear that once these plants get beyond 40 years of age they increasingly start to fail,” he says.
“That is an expensive risk and a dangerous one, particularly at this time of year when they are more prone to outages just when people most need to know they can rely on power.”
Climate Council energy expert Greg Bourne says: renewable energy remains the cheapest, and cleanest, energy option during this climate crisis.
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