Eraring Power Station: Angus Taylor slams battery back-up plan

Federal Energy Minister Angus Taylor has slammed a scheme to replace the Eraring coal-fired power station with a giant battery, calling it ‘delusional’.

Plans to replace the Eraring coal-fired power station with a giant battery have been slammed as “delusional” by federal Energy Minister Angus Taylor.

Mr Taylor was responding to comments from NSW Energy Minister Matt Kean that a massive battery would be used to safeguard the state’s energy supply, following news that Eraring Power Station, in Lake Macquarie, would close in 2025 — seven years earlier than planned.

Both ministers on Thursday described Origin Energy’s decision to close the station early as “disappointing”.

The cooling water canal at the Eraring Power Station. Picture: Hollie Adams

Mr Kean said a massive battery would be used to safeguard the state’s energy supply when

Eraring — Australia’s largest coal-burning power station — closed.

“Origin raised the possibility of this closure a number of months ago and, with advice from the Australian Energy Market Operator (AEMO), we have developed a comprehensive plan to ensure that NSW has reliable and affordable electricity,” Mr Kean said.

A 700MH battery will be used to ease grid capacity from 2025, allowing customers to access more energy from existing generation sources.

“Our giant grid battery will act as a shock absorber, so that transmission capacity currently kept in reserve to handle shocks, such as lightning strikes, can be freed up to transfer energy to consumers,” Mr Kean said.

“AEMO has advised that this additional transmission capacity will give the State’s consumers access to enough existing electricity generation to meet the Energy Security Target at the time Eraring closes”.

Eraring Power Station is Australia’s largest coal-fired power station. Picture: Hollie Adams

Mr Taylor was scathing in response.

“Anyone who thinks a 700 megawatt battery that lasts for two hours is going to replace a 2800 megawatt coal fire power station is delusional. That’s not enough,” he said.

“It can play a role. Of course it can play a role, but we’re going to need serious replacement.”

The Daily Telegraph understands that behind the scenes negotiations between Mr Kean and Origin to close the plant and replace it with a giant battery had been taking place for

six months.

Mr Taylor said he only heard about the scheme Wednesday night.

“We now have 3½ years to replace Eraring or extend its life,” Mr Taylor told The Daily Telegraph.

“I am deeply concerned about capacity leaving the market, and we are making it very clear to Origin that we expect them to be part of the solution.”

Treasurer and Minister Energy Matt Kean. NCA NewsWire / Damian Shaw

Federal Energy Minister Angus Taylor. Picture: NCA NewsWire / Gary Ramage

There is a concern in government that other power companies may follow Origin Energy’s lead in closing coal-fired power stations. That could pose a problem for energy supply if power generators close before new renewable sources come online.

Mr Kean and Mr Taylor both expressed disappointment at the impact of Eraring’s closure on the plant’s workers in Lake Macquarie.

Mr Taylor said that the federal government had been pushing for new dispatchable power via projects such as Kurri Kurri, Tallawarra, and Snowy Hydro 2.

“We have been driving these projects in the face of enormous opposition from Labor, who opposed Kurri Kurri until recently, and activists,” he said.

Originally published as Eraring Power Station: Angus Taylor slams battery back-up plan