Australia’s largest coal-fired power station will remain open for almost two years longer than previously planned.
Origin Energy said it would extend the operation of the 2,880 megawatt (MW) Eraring Power Station from 19 August 2027 to 30 April 2029 to support energy supply in the state of New South Wales (NSW) through the transition to renewable energy sources.
Origin said the extension reduced risks to system security, highlighted by the Australian Energy Market Operator (AEMO) in its Transition Plan for System Security and enabled the plant to continue to support reliable power to NSW households and businesses.
“We’ve taken the decision to extend Eraring’s operations after assessing a range of factors, including the needs of our customers, market conditions and the important role the plant plays in the NSW energy system,” Chief Executive Officer Frank Calabria said in an ASX announcement.
“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.
“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.”
Eraring opened in 1984 and was originally slated to close in August 2025 before the company agreed with the NSW Government to keep it open until 2027 because sufficient renewable energy would not be available to replace the lost output.
Origin said it did not intend to invest in further major maintenance overhauls ahead of the plant’s April 2029 retirement.
The extension was also not expected to affect Origin’s 2030 emissions reduction targets and long-term ambition to achieve net zero emissions by 2050, as outlined in the company’s 2025 Climate Transition Action Plan.
Origin also said the final stage of the 300 MW / 450 megawatt hour (MWh) large-scale grid battery next to Eraring Power Station Eraring Battery, on the NSW Central Coast was expected to come online in the first quarter of 2027.
Once all stages were completed, the battery would deliver 700MW / 3,160MWh of power and provide an average of 4.5 hours of storage capacity in NSW.
Origin shares (ASX: ORG) were trading five cents (0.45%) higher at A$11.10 at the time of writing, capitalising the company at A$19.12 billion (US$12.8 billion).
