Origin Energy announced the extension of the operation of the Eraring power plant until April 2029. This decision is in response to risks identified by the Australian Energy Market Operator (AEMO) regarding the stability of the system during the transition to renewable sources.
Eraring’s power plant back-up in full energy conversion
The plant, located in the state of New South Wales, was due to close in August 2027. However, due to the slow development of renewable renewable and storage infrastructure and storage infrastructure, Origin opted to keep its four coal-fired generation units operating for almost two more years. This will allow it to bolster system reliability while key projects, such as new transmission lines and the large-scale battery at the same Eraring site, move forward.
Despite the extension, Origin confirmed that its climate commitments remain in place. The Australian energy company ratified its emissions reduction targets for 2030 and its roadmap towards carbon neutrality by 2050. The company assured that it will not make any new major maintenance investments before decommissioning in April 2029.
As part of its Just Transition strategy, Origin will continue to implement the Future Directions program, aimed at retraining Eraring employees. More than 500 training courses have already been funded. In addition, the A$5 million Eraring Community Fund will remain active until 2032 to support local projects.
The company also highlighted that the Eraring site will continue to play a significant role beyond 2029. The Eraring battery is already partially operational and is expected to reach its full capacity of 700 MW / 3160 MWh by 2027, providing up to 4.5 hours average electricity backup for NSW.
The decision to extend operations was made after analyzing market conditions, customer needs and the actual timing of renewable infrastructure implementation. Frank Calabria, CEO of Origin, emphasized that ensuring a stable supply is a priority as the transition of the national electricity system moves forward.
Source and photo: Origin Energy