“This requires a speedy transition to renewable energy but that must happen as smoothly as possible for households and businesses,” he says.
“Reducing Eraring’s capacity over the next three years means that by 2029 we can have renewables energy and storage roaring at full capacity.”
Stephanie Bashir, CEO of energy firm Nexa Advisory, says that “Eraring is effectively shutting itself down” and describes the decision as not surprising but disappointing.
“If the NSW Government is serious about lowering power bills and keeping the light on, it must fast-track replacement renewables, fix the blocks on transmission build and stop normalising coal extensions as the default option,” she says.
MINING ENERGY UNION
Mining and Energy Union (MEU) Northern Mining and NSW Energy president Robin Williams says rumours of the extension have been circulating, creating anxiety for workers and their families.
“This decision finally provides some certainty for the employees at Eraring,” he says.
“It must also provide certainty for the hundreds of workers in Eraring’s supply chain,
particularly those at Myuna Colliery, which exists solely to supply coal to the station.”
The MEU says there are 500 directly employed and contracted workers at Eraring station and another 300 workers at Myuna.
Williams says workers would welcome job security up to 2029 but says Origin has no long‑term coal supply contract with Myuna.
“Myuna is next door to Eraring, wholly dependent on the power station, and produces the quality coal the plant was designed to operate on,” he says.
“This new timeline certainty for Eraring should spur Origin to lock in coal supply from Myuna to 2029, supporting local jobs and ensuring the power station continues to operate efficiently.”
CLIMATE ENERGY FINANCE
Tim Buckley, founder and director of Climate Energy Finance, says the decision is “disappointing” and says a permanent solution would be building distributed and utility scale renewable energy firmed by batteries at speed and scale.
“The cost of inaction on the climate is extreme and rising – just look to our southern neighbours (Victoria) this month,” he says.
“The recent heatwaves proved our grid reliability is improving with greater renewables share, particularly rooftop solar and behind-the-meter batteries.
“Wholesale electricity prices are coming down as a result of new renewables and battery firming capacity coming on stream.”
INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS
Johanna Bowyer, lead analyst for Australian Electricity at Institute for Energy Economics and Financial Analysis (IEEFA), says the extension undermines investor confidence.
“Continual coal life extensions creates uncertainty that scares off new renewable investment; NSW needs to move faster on renewables and transmission to make sure coal is replaced in a timely manner,” he says.
READ OUR EARLIER (2022) STORY: Eraring station to shut seven years early
