‘Get out the way’ of lifeline for coal power, says NSW Energy Minister Penny Sharpe

The NSW Energy Minister has told her predecessor to ‘get out the way’ amid criticism from the opposition benches to the possible extension of Eraring power station.

Origin Energy's Eraring power station, which could be extended beyond 2025, pending the outcome of discussions between the company and the NSW government.

NSW Energy Minister Penny Sharpe has told predecessor Matt Kean to “get out the way” amid opposition criticism of government plans to extend the life of the state’s largest coal power station beyond 2025.

Ms Sharpe on Tuesday said the government would work with Origin Energy to potentially ­extend operations at Eraring power station beyond a mooted August 2025 closure date.

The proposal was met with criticism from the NSW Liberals and Greens, who accused the government of “being held over a barrel” by Origin.

The potential extension, the minister said, could help avoid higher energy prices and potential power shortages.

The move came as the minister released the government’s ­response to an “electricity supply and reliability check-up”, aimed at rescuing “the state’s energy road map”. “The check-up is a clear-sighted assessment that has kicked the tyres of NSW’s energy policy,” Ms Sharpe said.

NSW Energy Minister Penny Sharpe addresses the media in Sydney to announce the government’s response to the electricity supply report. Picture: Gaye Gerard

“There’s already been good progress, there’s challenges we cannot ignore, and the idea was to keep the tyres hard on our ­existing policies.”

She said the “case for Eraring’s extension was there” and the government had accepted the recommendation it engage with Origin to do so.

However, the decision – both for what it could cost taxpayers and how it would impact the state’s drive to net zero by 2050 – was criticised.

Mr Kean, who is now opposition health spokesman and had been against an extension of ­Eraring when energy minister, said on Tuesday that the move could pose a threat to NSW’s ­triple-A credit rating.

The opposition benches claim the NSW government was ‘being held over a barrel’ by Origin. Picture: Ian Waldie

“Apart from the environmental damage of today’s announcement and needless taxpayer spending to keep big coal going – it is also likely to cost NSW its triple-A credit rating,” he wrote on social media, claiming an extension would cost taxpayers $3bn.

Ms Sharpe, however, said Mr Kean should “get out the way”.

“I’m disappointed he’s lost a sense of bipartisanship in these matters,” she said, claiming she had inherited “delayed” and “over-budget” energy projects.

“His random speculation and figures are unhelpful.”

Any deal would likely require NSW to underwrite Eraring – leaving taxpayers on the hook for potentially hundreds of millions of dollars.

Origin has said Eraring ­requires an annual spend of ­between t $200m and $250m, plus the cost of buying coal to run, although it earns money from selling electricity.

“It’s like playing a poker game and telling your opponent what cards you have,” opposition Treasury spokesman Damien Tudehope said.

Former energy minister Matt Kean criticised the move but was told to ‘get out the way’ by Ms Sharpe. Picture: David Swift

“Can you imagine the Origin CEO hearing the state government could pay whatever to keep it open? They’d think: ‘You beauty!’”

Opposition energy spokesman James Griffin said any decision to extend Eraring “came with consequences”.

“What today’s report doesn’t tell you is how much the NSW taxpayer will pay if the life is ­extended,” he said, urging an “open and transparent process” to ensure the best deal for the ­taxpayer.

NSW Greens Energy spokeswoman Abigail Boyd says the move lacked clarity for the public. Picture: Simon Bullard

NSW Greens energy spokeswoman Abigail Boyd said the government was being “held to ransom” by Origin, which had taken it upon themselves to set the “timeline”.

“Labor were elected with a promise of finally doing something about the climate crisis and they’re dragging their feet – it’s symptomatic of a lack of a ­broader transition plan,” Ms Boyd said.

The report, and government’s response, does not set any time frame for a potential extension, or confirm it will be extended, only that the government will ­engage Origin on the matter.

Ms Sharpe refused to comment on any time frame but conceded its closure in 2025 “was not very far away”.