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NSW extends Eraring service time


The New South Wales Government has announced a two-year extension to the operation of the Eraring Power Station until 2027.

According to the State Government, this move is part of an agreement with Origin Energy, aimed at ensuring energy reliability and managing price risks as the state transitions from coal-fired power to renewable energy.

The Eraring Power Station, one of Australia’s largest coal-fired power plants, was slated for closure. However, the latest analysis from the Australian Energy Market Operator indicates that without Eraring, NSW could face energy reliability risks from 2025.

The State Government said the temporary extension of Eraring’s operation will provide the necessary time to develop the renewable energy, storage, and network infrastructure projects required to replace the power station.

NSW Premier Chris Minns said the decision delivers certainty for households and businesses.

“The people of NSW now have certainty that the NSW Government has a plan to ensure we have reliable energy while we transition the workforce and the economy to net zero,” he said.

NSW Minister for Climate Change, Energy and the Environment Penny Sharpe said the extension to the operation of Eraring is a “proactive and sensible step” to avoid electricity outages and rising power prices.

“The NSW Labor Government remains entirely committed to the transition to renewable energy and our emissions reduction targets,” she said.

“A net zero future holds immense opportunities for our state’s economy and our environment.”

According to Origin, the extension of Eraring’s operations remains consistent with Origin’s 2030 emissions reduction targets and long-term ambition to be net zero emissions by 2050, as outlined in the company’s Climate Transition Action Plan.

Frank Calabria, Origin CEO said the company believes this agreement “strikes the right balance” with an extension to operations enabling Eraring to continue “supporting security of electricity supply in New South Wales” through the energy transition, while making compensation available to Origin in the event economic conditions for the plant are challenging.

“This agreement supports Eraring to continue to play an important role in maintaining reliable power for businesses and households through a period in which there remains considerable uncertainty about the volume and timing of new renewables, transmission and firming infrastructure coming online,” he said.

“Importantly, today we can give our Eraring employees, our suppliers and the local
community greater certainty around the future of the plant as we transition towards its

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