On Tuesday, Origin Energy announced it would extend the lifespan of its coal-fired Eraring Power Station - near Lake Macquarie, 135km north of Sydney - until April 2029.
Finance and energy experts have blamed the NSW Government, saying slow project approvals were delaying the shift to renewable energy and maintaining our reliance on expensive fossil fuels.
🗓️ The extension
Origin Energy cited a “range of factors” behind the extension, and said the delay would allow more time for renewables, storage and transmission projects to be delivered.
Australia’s power grid manager (AEMO) says shutting the plant too early could make the electricity system less stable.
Experts say the extension is a sign that clean energy capacity hasn’t been built fast enough, and that keeping the plant alive longer will keep people’s electricity bills high.
🤔 Why it matters
At the time of its closure Eraring will be 45 years old.
Energy sector expert at Griffith University Associate Professor Joel Gilmore says once plants reach 40 years of age “they increasingly start to fail, and that is an expensive risk and a dangerous one”.
👴 Getting old
Ageing coal plants tend to push up prices through higher maintenance costs and unplanned outages, which can lead to price spikes.
The energy market operator has pointed to Australia’s ageing coal fleet as the biggest risk to grid reliability. In 2024, the station had more than 6,000 hours (250 days) of planned
and unplanned outages.
❌ A failure
Stephanie Bashir, the CEO of clean energy consultants Nexa Advisory, says while the extension isn’t surprising, it is disappointing.
“This situation is the direct result of a failure of the NSW Government to move with urgency to approve and deliver replacement renewable generation, transmission and storage at the pace required.”
✅ One solution
Renewable lobbyists the Clean Energy Investor Group says NSW should fast track approvals for renewables using the Critical State Significant Infrastructure planning process.
The group says broader use of this process would improve investor confidence, and unlock faster investment in renewables, storage and transmission.
Thumbnail: Dean Lewis, AAP