Eraring Extension Signals Risks in Australia’s Energy Transition Timeline
Origin Energy has announced it will keep the Eraring Power Station operational until April 2029, extending its life by nearly two years to bolster NSW’s energy security during the shift to renewables.
- Eraring Power Station operations extended from August 2027 to April 2029
- Extension supports NSW energy system security amid transition risks
- No further major maintenance planned before 2029 closure
- Eraring Battery project progressing, enhancing storage capacity
- Extension aligns with Origin’s 2030 emissions targets and net zero by 2050 goal
Extension to Support Energy Security
Origin Energy has confirmed it will extend the operational life of its Eraring Power Station, the largest coal-fired power plant in New South Wales, from its previously planned closure in August 2027 to April 2029. This decision comes as a direct response to concerns raised by the Australian Energy Market Operator (AEMO) about system security risks during the ongoing energy transition.
Origin’s CEO Frank Calabria emphasised that the extension is a strategic move to ensure reliable power supply to NSW households and businesses while new renewable and storage infrastructure is completed. The move reflects the complex balancing act between retiring ageing coal assets and maintaining grid stability in a rapidly evolving market.
Balancing Transition and Reliability
The Eraring Power Station, a 2,880MW black coal facility operational since 1984, has been a cornerstone of NSW’s electricity supply. Origin’s extension decision acknowledges that despite significant progress on renewable projects and major transmission upgrades, the pace of change requires Eraring to remain online longer to mitigate risks associated with the ageing coal and gas fleet.
Importantly, Origin has stated it will not undertake any further major maintenance overhauls before the plant’s final closure in 2029, signalling a controlled wind-down rather than a full-scale operational renewal. This approach balances cost management with the need to keep the plant reliable during its extended life.
Renewables and Storage on the Horizon
Complementing the extension, Origin is advancing the Eraring Battery project, which began commercial operation in late 2025. Once fully completed by early 2027, the battery will provide 700MW of power with 3,160MWh of storage capacity, offering an average of 4.5 hours of energy storage. This large-scale battery is a critical component of the company’s strategy to integrate more renewables and reduce emissions.
Origin reassures stakeholders that the extension will not derail its emissions reduction targets for 2030 or its long-term ambition to achieve net zero emissions by 2050, as outlined in its 2025 Climate Transition Action Plan. The company remains committed to transitioning its energy portfolio while managing the practical realities of the current energy landscape.
Community and Workforce Support
Origin continues to support Eraring’s workforce through its Future Directions program, which provides career development, training, and wellbeing assistance. The company has already funded over 525 training courses to help employees prepare for the plant’s eventual closure. Additionally, the $5 million Eraring Community Fund remains active until 2032, supporting local projects impacted by the transition.
Looking beyond 2029, the Eraring site is set to remain a significant asset within the National Electricity Market, transitioning from coal-fired generation to a hub for renewable energy and storage solutions.
Bottom Line?
Eraring’s extended life buys critical time for NSW’s energy transition but underscores the ongoing challenge of balancing reliability with decarbonisation.
Questions in the middle?
- How will Origin manage operational risks without further major maintenance before 2029?
- What impact will the extension have on Origin’s financial performance and capital allocation?
- How quickly can renewable and storage projects scale to replace Eraring’s capacity post-2029?
