Origin Energy Limited has advised the Australian Energy Market Operator (AEMO) that it will extend the operation of all four units of the Eraring Power Station in New South Wales from 19 August 2027 to 30 April 2029, citing the need to support energy supply during the transition of the electricity system.
In a media release, the ASX-listed company said the extension is intended to reduce risks to system security identified by AEMO in its recently released Transition Plan for System Security, while continuing to provide reliable power to NSW households and businesses.
Origin chief executive officer Frank Calabria said the decision followed an assessment of several factors, including customer needs and market conditions.
“We’ve taken the decision to extend Eraring’s operations after assessing a range of factors, including the needs of our customers, market conditions and the important role the plant plays in the NSW energy system,” Calabria said.
He noted that while progress is being made on new energy infrastructure, additional time is required to ensure stability.
“Good progress is being made on the delivery of new energy infrastructure including major transmission works and projects like our large-scale battery at Eraring, but it has become clear Eraring Power Station will need to run for longer to support secure and stable power supply,” he said.
According to Origin, the extension will provide more time for renewable generation, storage and transmission projects to be delivered, amid uncertainty around the reliability of Australia’s ageing coal and gas fleet.
Calabria said the decision also aims to provide greater certainty to employees, the local community and the market.
Origin said it has invested significantly in maintaining Eraring’s four units to support reliable and increasingly flexible operations, but does not plan to undertake any further major maintenance overhauls ahead of the plant’s retirement in April 2029.
The company stated the extension is not expected to affect its 2030 emissions reduction targets or its long-term ambition to achieve net zero emissions by 2050, as outlined in its 2025 Climate Transition Action Plan.
The planned closure date of April 2029 remains consistent with an agreement reached with the NSW Government in May 2024.
Origin said it will continue to support employees through its Future Directions program, which provides career, training, wellbeing and financial assistance, and has funded 525 training courses to date.
The $5 million Eraring Community Fund will also remain in place until 2032, with nearly $1.5 million already committed to 47 community projects.
Beyond 2029, Origin said the Eraring site will continue to play a role in the National Electricity Market through the Eraring Battery project. Stages one and three commenced commercial operation in late 2025, with final stages expected in the first quarter of 2027.
Once complete, Origin stated the battery is expected to deliver 700 megawatts and 3,160 megawatt-hours of storage capacity.
The content of this article is based on information supplied by Origin Energy Limited (Origin). For more information, please refer to the official company announcement and communications from Origin. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
