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Origin Energy’s Eraring coal-fired power station, the state’s largest generator at just under 3,000 megawatts, was originally set to close early. A state government report warned that closing it could risk electricity shortages, so they offered an underwriting agreement. Origin could have losses covered by the government if they opted in, or operate independently if profitable. They declined in the first year and must decide again this March. The agreement requires the plant to close by 2029, which is the date Origin has now chosen.
Tim Buckley, Director of the Climate Energy Finance Group, says extending operation to 2029 is positive. For consumers, it helps stabilize power prices after recent spikes caused by global fossil fuel inflation. For workers, it provides two more years of employment before transition. For Origin, closure timing does not affect 2030 decarbonization targets, and for the NSW Energy Minister, it buys flexibility and reliability while delayed projects, such as Snowy Hydro 2.0, EnergyConnect, and the Waratah Super Battery, come online.
Eraring will operate more flexibly, around 25% capacity most days, ramping up in evening peaks and shutting down when renewables provide cheap electricity. Renewable energy is growing rapidly, with 46% of NSW electricity and 50.1% nationally coming from renewables in late 2025. Local jobs and the regional economy remain key considerations, and transition planning will continue to be important as the plant operates toward 2029.