NSW government given recommendation to keep Eraring open beyond 2025 closure

A decision on whether the life of Australia’s largest coal-fired power plant will be extended is imminent amid concerns over energy security.

The NSW government will soon announce whether Australia’s largest coal-fired generator will continue to operate past its 2025 closure date to counter any potential energy shortfalls as the state transitions to renewable energy sources.

As reported by The Sydney Morning Herald, the advice was given as part of the government-commissioned Electricity Supply and Reliability Check Up.

Any extension of Eraring, which produces about 25 per cent of the state’s power needs, will require the government to negotiate with its operator Origin Energy.

The review encouraged the government to consider a temporary extension on Eraring’s lifespan that also included an exit strategy.

A report has recommended the government extend the lifespan of Eraring Power Station. Picture: Origin Australia

A spokesman for NSW Energy Minister Penny Sharpe confirmed the report had been received and said confirmation as to whether Eraring would continue operations past 2025 was days away.

“The NSW government is considering the recommendations in the report and will make the report and the government’s response public by the end of the month,” he said.

“The government has always said all options are on the table when it comes to Eraring.”

Since Labor formed government, the future of Eraring has been a source of constant speculation, with questions over whether its operations would need to be extended over delays in renewables coming into the grid.

Previously, Eraring was slated to close in 2032; however, its retirement was bought forward to 2025 last year.