The NSW government will begin talks with Origin Energy about what it would take for the company to keep the Eraring coal-fired power station open past its nominated 2025 closure date, after a report found prices could spike and supply would be more unreliable when the generator is switched off.

After months of deliberation, NSW Energy Minister Penny Sharpe released the findings of a “check-up” of the state’s energy supply on Tuesday and unveiled the government’s next steps to ease the spectre of blackouts amid an energy transition and the retirement of older coal-fired infrastructure.