The New South Wales government has agreed to underwrite the Eraring Power Station for two years, extending until August 2027. This decision, announced by NSW Energy Minister Penny Sharpe, aims to provide certainty for workers, the energy market, and consumers across the state. The underwriting also supports NSW’s emissions reduction target for 2030. Origin Energy, the operator of Eraring, had previously indicated that the station, Australia’s largest coal-fired power plant, would continue operations until 2029 due to the slower-than-anticipated deployment of renewable energy infrastructure. Origin Energy is an Australian energy company focused on power generation and energy retailing.
Penny Sharpe emphasised the government’s commitment to maintaining reliable electricity supply and reducing power prices. She highlighted the progress NSW has made in replacing aging coal-fired power stations with renewable energy sources. Since the recent election, the state has increased its operational renewable energy capacity by almost 70 per cent, which is equivalent to the capacity of the Eraring plant.
Sharpe stated that current energy security projections indicate that NSW will have sufficient energy supply when Eraring ultimately closes in 2029. This forecast is based on the anticipated addition of new renewable generation facilities and energy storage solutions. NSW Premier Chris Minns has previously voiced his support for extending the life of Eraring, characterising it as a positive development for the state’s energy security and economy.
The two-year underwriting agreement ensures a more stable transition period as NSW continues to expand its renewable energy capabilities. The government believes that this extension is a crucial step in securing a reliable and affordable energy future for the state.
