Origin Energy has advised AEMO that it will extend the operation of all four units of the Eraring power station through to 30 April 2029, in order to support energy supply in NSW during the electrification transition.
Company CEO Frank Calabria said the decision was based on a number of factors, including customer needs, market conditions, and the role of the plant in NSW’s energy system.
“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, but it has become clear Eraring power station will need to run for longer to support secure and stable power supply,” he said.
“Our decision to keep Eraring operating until April 2029 provides more time for renewables, storage and transmission projects to be delivered, and reflects uncertainty regarding the reliability of Australia’s aging coal and gas fleet.
“We are pleased to provide greater certainty for the community, our people and the market about Eraring’s future, and I want to commend the professionalism and focus of the Eraring team in continuing to maintain and operate the plant reliably given the vital role it continues to play for energy users in NSW.”
Industry reacts
The Clean Energy Council (CEC) said the extension was not unexpected, but underscores the urgent need to accelerate private investment in renewable energy, storage and transmission to replace aging coal assets.
“The average age of coal-fired generators in the National Electricity Market is now 38 years, with the historical retirement age just 44 years, placing much of the fleet firmly in the high-risk phase of its operating life,” CEC CEO Jackie Trad said.
“Only last week, we saw the latest episode in a series of coal-fired power failures, with yet another unplanned outage at the Callide C coal plant in Queensland, which saw two units taken offline and wholesale prices spiking yet again.
“Every renewable energy, storage and transmission project that reaches delivery reduces our reliance on ageing coal and moves the system closer to being cleaner, more affordable and more reliable.
“The solution is not to lean longer on ageing coal plants a day longer than necessary. The solution is to continue accelerating renewable energy, batteries, pumped hydro and transmission so Australia can replace coal with cleaner, cheaper and more reliable power, while avoiding the price shocks that coal outages continue to cause.”
The extension was welcomed by the Mining and Energy Union, which praised the decision for providing some job certainty for roughly 500 Eraring employees.
“But 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 power station,” the Union said in a statement.
“Myuna [coal mine] is next door to Eraring, wholly dependent on the power station, and produces the quality coal the plant was designed to operate on.
“This new timeline certainty for Eraring should spur Origin to lock in coal supply from Myuna through to 2029, supporting local jobs and ensuring the power station continues to operate efficiently.”