{"id":13885,"date":"2026-01-20T03:52:12","date_gmt":"2026-01-20T03:52:12","guid":{"rendered":"https:\/\/microvibenews.com\/?p=13885"},"modified":"2026-01-20T03:52:12","modified_gmt":"2026-01-20T03:52:12","slug":"australias-largest-coal-power-plant-to-operate-for-an-additional-two-years-which-green-groups-say-is-a-disaster-energy","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=13885","title":{"rendered":"Australia\u2019s largest coal power plant to operate for an additional two years which green groups say is a \u2018disaster\u2019 | Energy"},"content":{"rendered":"

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Australia\u2019s largest coal-fired power plant, Eraring in New South Wales<\/a>, will stay open for an additional two years until 2029, amid concerns about the national energy grid\u2019s ability to support demand.<\/p>\n

The operator of the plant in Lake Macquarie, Origin Energy, had previously agreed a deal with the state government to delay Eraring\u2019s closure from 2025 to August 2027<\/a>. While the state environment minister said the new extension would contribute to NSW\u2019s emissions reductions, climate advocates described it as a \u201cdisaster\u201d.<\/p>\n

In a statement on Tuesday morning, the environment minister, Penny Sharpe, confirmed Origin had notified the NSW government, the Australian Stock Exchange (ASX) and the Australian Energy<\/a> Market Operator (Aemo) that it would operate Eraring until April 2029. All four units of the power station would continue to be used.<\/p>\n

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\u201cOrigin\u2019s decision gives certainty to workers, the market and energy consumers across the state, as well as contributing to NSW\u2019s 2030 emissions reduction target,\u201d Sharpe said.<\/p>\n

The option to extend to 2029 was included in the original agreement to extend to 2027.<\/p>\n

\u201cMy number one job is keeping the lights on and putting downward pressure on power prices. NSW is making real progress in replacing ageing coal-fired power stations. Since the election, we have increased the amount of renewable energy capacity in operation by almost 70%. That\u2019s equivalent to Eraring\u2019s capacity.\u201d<\/p>\n

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The decision comes after Aemo\u2019s Transition Plan for System Security, released last month, warned of energy grid \u201cstrength deficits across New South Wales\u201d for 2027-28 under Eraring\u2019s previous retirement date.<\/p>\n

Sharpe said current energy security projections showed NSW would have sufficient energy supply when Eraring closed in 2029 \u201cthanks to new renewable generation and storage coming online\u201d.<\/p>\n

Origin\u2019s chief executive, Frank Calabria, said the decision to keep Eraring open would \u201cprovide more time for renewables, storage and transmission projects to be delivered, and reflects uncertainty regarding the reliability of Australia\u2019s ageing coal and gas fleet\u201d.<\/p>\n

\u201cGood 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,\u201d he told the ASX on Tuesday.<\/p>\n

A 700MW battery is expected to provide an average of 4.5 hours of storage capacity at the site by mid-2027.<\/p>\n

The NSW Greens said the move was a \u201cdisaster for NSW and Australia\u2019s climate targets\u201d. The party\u2019s environment spokesperson, Abigail Boyd, said \u201ckeeping any coal power station open longer is a cost-of-living and human health disaster\u201d.<\/p>\n

\u201cDespite persistent warnings that NSW is already not on track to achieve our legislated climate targets, the NSW Labor government has been continuing on a business-as-usual trajectory.\u201d<\/p>\n

Boyd claimed a further two years of full production \u201cof 16TWh\u201d at Eraring would \u201ccontribute to taking us upwards of 50% further away from our legislated emissions reduction targets each year of operation, or around 3.5% of our total emissions budget\u201d.<\/p>\n

The state government has legislated emissions reductions targets of 50% below 2005 levels by 2030, 70% by 2035 and net zero by 2050.<\/p>\n

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The CEO of the Nature Conservation Council of NSW, Jacqui Mumford, said \u201cfar from supporting the transition, Origin\u2019s decision will crowd out investment in the clean, modern sources of generation we need to be switching to\u201d.<\/p>\n

Johanna Bowyer of the Institute for Energy Economics and Financial Analysis said extending Eraring \u201cundermines certainty right when investors in new replacement generation need clarity\u201d.<\/p>\n

Jackie Trad, the chief executive of the Clean Energy Council, said recent coal-fired power failures, including one at the Callide C coal plant in Queensland last week, showed \u201cextending the life of ageing coal plants is far from ideal\u201d.<\/p>\n

\u201cAn orderly transition matters, but the reality is that old coal power stations are increasingly unreliable and expensive, and that volatility flows straight through to consumers,\u201d she said.<\/p>\n

The NSW opposition said the announcement \u201cprovides a reprieve for the state\u2019s energy security\u201d but claimed it showed a \u201cbroader failure\u201d by the Minns government to secure the \u201csocial license\u201d for the renewables transition.<\/p>\n

\u201cWe have seen project after project delayed, while regional communities are being ignored and steamrolled by a government that doesn\u2019t listen.\u201d<\/p>\n

Origin said the extension was not expected to affect its 2030 emissions reductions targets and 2050 net zero plans. The 2,880MW black coal plant on the shores of Lake Macquarie has been fully operational since 1984.<\/p>\n

About half of the national electricity grid is powered by black coal-fired power stations such as Eraring.<\/p>\n

\u2013 with Australian Associated Press<\/em><\/p>\n