Origin Energy has announced a two-year delay in the closure of Australia's largest coal-fired power plant, Eraring, pushing its operational end date from August 2027 to April 30, 2029. The decision follows warnings from the Australian Energy Market Operator (AEMO) regarding the electricity grid's readiness and concerns about potential power outages, aiming to provide additional time for the development of new renewable energy and storage infrastructure.
Plant Overview and Decision
The Eraring coal-fired power plant, owned by Origin Energy, has been Australia's largest, with a capacity of 2880 megawatts. Located on Lake Macquarie, approximately 150 kilometers north of Sydney, the plant was initially scheduled to cease operations in August 2027. However, Origin Energy has now committed to operating all four of the plant's units until April 30, 2029.
Reasons for Postponement
The postponement stems from warnings issued by the Australian Energy Market Operator (AEMO) concerning the preparedness of the electricity grid. These warnings highlighted potential risks of power outages if the plant were to close as originally planned.
Frank Calabria, Chief Executive of Origin Energy, stated that the extension aims to support energy supply in New South Wales during the transition to new energy sources. He explained that the delay provides additional time for the construction and delivery of new energy infrastructure, including renewable energy projects, storage assets such as batteries and hydroelectric dams, and new power transmission lines.
Mr. Calabria further noted that the decision factored in customer needs, market conditions, and Eraring's role in the state's energy system. He acknowledged that while progress on new infrastructure, including major transmission works and a large-scale battery at Eraring, is underway, the continued operation of the power station is deemed necessary to maintain a secure and stable power supply for an extended period.
Government and Future Projections
New South Wales Environment Minister Penny Sharpe commented on the announcement, stating that current energy security projections anticipate sufficient energy supply by 2029, supported by the ongoing development of new renewable generation and storage facilities.