Coal-fired Eraring Power Station retirement postponed to 2027

Started in 1984, the plant is initially targeted for closure as early as August 2025.

Origin and the New South Wales Government have agreed to delay the closure of the 2,880-megawatt (MW) Eraring Power Station by two years to 19 August 2027 to support the state’s power supply amidst the energy transitions.

In a statement, Origin said that under the Generator Engagement Project Agreement (GEPA), the government will help cover the cost of the plant’s operations during the extension periods where it will generate six terawatt-hours of power annually

“We believe this agreement strikes the right balance, with an extension to operations enabling Eraring to continue supporting the security of electricity supply in New South Wales through the energy transition, while making compensation available to Origin in the event economic conditions for the plant are challenging,” Origin CEO Frank Calabria said.

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“This agreement supports Eraring to continue to play an important role in maintaining reliable power for businesses and households through a period in which there remains considerable uncertainty about the volume and timing of new renewables, transmission and firming infrastructure coming online,” he added.

The GEPA also indicated that Origin may recover a portion of the Eraring losses for an upcoming financial year using an agreed formula, capped at $149.4m (A$225m) per year.

If the operations are profitable, Origin will pay the government 20% of the profit with a maximum amount of $26.6m (A$40m) per annum.

The agreement also stated that the Origin still has the right to determine the final retirement timeline of the four Eraring units but there will be no state compensation after 2027 and all units must shut down no later than April 2029.

$1 = A$1.51