Eraring Power Station set to remain open beyond 2025 to ensure state’s energy

Concerns over ensuring electricity supply make the future of Eraring power station is uncertain. Industry insiders say massive delays to transmission projects may force the government to stick with the plant beyond 2025.

The Eraring coal-fired power station is set to stay open past 2025 with government and industry sources concerned the pipeline of renewable energy projects will not be ready in time.

Leading energy industry sources warn Premier Chris Minns will not be able to close the plant until replacement energy sources are ready.

Transmission infrastructure, designed to transport green energy, has been beset with delays across the state with energy authorities saying the government will be left with little choice but to negotiate an extension for Eraring.

The true extent of the delays will be known when the an energy HealthCheck report will be released in August.

Eraring owner Origin Energy has previously indicated it will turn off the coal-plant as early as August 2025.

Eraring owner Origin Energy has previously indicated it will turn off the coal-plant as early as August 2025 SUPPLIED

Transmission projects across the Central West-Orana renewable energy zone have faced delays, as have the New England REZ transmission link with doubt also thrown onto whether the Hunter Transmission Project will be built in time.

Additionally delays of green energy developments such as the commonwealth-owned Snowy Hydro 2.0, extended to 2028 and which was regarded as vital to NSW’s renewable energy transition, has also thrown doubt on the state’s ability to produce enough energy as power stations close.

At the same time wind and solar farm projects in the Central West-Orana REZ have had their assessment determinations extended, increasing the time it takes for the projects to get off the ground.

The Hunter Transmission Project (HTP), a series of proposed 500xkV double circuit transmission lines to run between Eraring power stations and Bayswater, is designed to have a role in bolstering the energy security system following the closure of Eraring.

The Daily Telegraph can reveal government-owned EnergyCo has yet to choose a network operator to carry out the project, despite energy infrastructure company Transgrid having had conversations with the former government indicating they were ready to deliver the project.

As no operator has been chosen, there has been no submitted Environmental Impact Statement, a process which could take over a year due to requirements to consult extensively with the local community.

Eraring General Manager Wayne Winterbine

The HTP has been identified by both the Commonwealth and State governments as being critical for ensuring ongoing energy security in NSW.

A senior Labor source said they were “highly concerned” that the HTP would not come online in time and had seen very limited community consultation in their electorates.

Lake Macquarie MP Greg Piper said he had yet to see any movement on the HTP in his area but was hopeful he would see developments before the end of the year.

“If we’re not ready we shouldn’t be shutting down Eraring power station,” he said.

“If we can’t have confidence that we can keep the lights on and not have brownouts and blackouts we need to delay the closure.”

Despite the high level of government and community concern regarding the project, EnergyCo said they still expected the project to be completed and operational by 2027-28 as per the Energy Regulator’s Integrated System plan. This comes despite the department admitting the project was still only at the planning stage.

Origin Energy has met with Energy Minister Penny Sharpe to have preliminary discussions around Eraring. Picture: Gaye Gerard / NCA Newswire

Origin Energy has met with Energy Minister Penny Sharpe to have preliminary discussions around Eraring. The HealthCheck report on the state’s energy outlook ordered by the government will be released in early August and will detail whether the state will have enough energy without Eraring.

“(The report is) conducted at arm’s length from the NSW government,” a spokesperson for Ms Sharpe said.

“The government will consider its response in due course.”

Yet insiders in the state’s energy companies say delays in transmission provision mean the report will show the government will likely have to negotiate with Origin about extending the life of the plant.

“Transmission everywhere is delayed and found to be taking much longer than what anyone would have hoped and expected,” one energy source said.

“Everywhere you look every project is costing more and taking longer … all project delays change the mix of power availability in the market generally.”

Any negotiations with Origin Energy over an extension of Eraring would require financial concessions from the government to keep even one of its four 720 megawatt turbo alternators open.

Former Coalition Energy Minister Matt Kean had previously looked at a proposal dubbed “Project Emu” which would have kept up to 1440 megawatts of base-load coal-fired power generation running. Picture: NCA NewsWire / Jeremy Piper

Former Coalition Energy Minister Matt Kean had previously looked at a proposal dubbed “Project Emu” which would have kept up to 1440 megawatts of base-load coal-fired power generation running.

The deal would have required the NSW to pay 90 per cent of any losses Origin incurred running two generators to 2028.

Mr Kean said extending the life of Eraring was a decision for the government.

“We chose not to (extend it) because an expert panel recommended that the terms being offered were not the best for the state,” he said.

“Of course the panel couldn’t take into account a new Labor government coming into government and doing nothing but order reviews.”