In a move that has sparked both praise and criticism, Australia’s largest coal-fired power plant, Eraring, will continue operating until 2029, two years longer than previously planned. The decision by Origin Energy, the plant’s operator, aims to ensure a stable and secure power supply for New South Wales as the state navigates the transition to renewable energy.
The extension, confirmed by NSW Environment Minister Penny Sharpe, comes after the Australian Energy Market Operator (AEMO) warned of potential energy grid “strength deficits” in the state for 2027-28 under Eraring’s original retirement date. Origin’s chief executive, Frank Calabria, cited the need for “more time for renewable, storage and transmission projects to be delivered” as a key factor in the decision.
While the government has lauded the move as contributing to NSW’s emissions reduction targets, environmental advocates have decried it as a “disaster” that will set back the state’s climate goals. The NSW Greens argue that the additional two years of full production at Eraring will significantly hinder the state’s ability to meet its legislated emissions reduction targets.
The opposition has also criticised the government, claiming the announcement “provides a reprieve for the state’s energy security” but reflects a “broader failure” to secure the “social licence” for the renewable energy transition. They argue that regional communities are being “ignored and steamrolled” by a government that fails to listen.
Origin, however, maintains that the extension will not affect its 2030 emissions reduction targets and 2050 net-zero plans. The company states that the decision reflects the “uncertainty regarding the reliability of Australia’s ageing coal and gas fleet” and the need to provide “more time for renewable, storage and transmission projects to be delivered.”
As NSW navigates this delicate balance between energy security and emissions reduction, the extension of Eraring’s lifespan has become a lightning rod for debate over the state’s energy future. With the government touting the move as a necessary step and critics warning of its environmental consequences, the decision’s long-term impact on NSW’s energy transition remains a subject of ongoing discussion and scrutiny.
