Origin Energy will continue operations from all four units of the Eraring coal-fired power station until April 2029 due to “a range of factors”.
This is a 20-month extension from the previous closure date in August 2027 – a decision that “reduces risks to system security” as outlined in the Australian Energy Market Operator’s (AEMO) Transition Plan for System Security report.
“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,” Origin chief executive officer Frank Calabria said.
“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.”
Origin said that given it has made “significant investment” in the maintenance of Eraring’s four units over many years, it doesn’t intend to make any further major maintenance overhauls on the plant.
The company said the extension wouldn’t impact its 2030 emissions reductions targets and its goal to reach net zero by 2050.
“The decision to close all four units in April 2029 is consistent with the terms of the existing agreement reached with the NSW Government in May 2024,” Origin said.
The Eraring BESS extends the role of the Eraring site beyond 2029, Origin said, with commercial operation commencing in late 2025 (stages one and three).
In December, Origin committed $80 million to build a fourth stage of the Eraring BESS, with construction to commence by the end of 2025 and the BESS to be operational by the first quarter of 2027. This will support a 700MW/3160MWh operation.
The 2880MW black coal-fired Eraring power station first commenced operations in 1984.
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