Origin Energy has confirmed a significant extension for Australia's largest coal-fired power station, with Eraring now set to remain operational until at least April 2029.
Decision Driven by Energy Security Needs
The energy giant announced on Tuesday that all four units of the 2,880-megawatt generator would continue running. This decision was made to bolster the security and stability of the power supply in New South Wales during the ongoing shift towards renewable sources.
Origin's chief executive, Frank Calabria, stated the move followed a thorough assessment of market conditions, customer requirements, and the plant's critical role in the state's electricity grid. "Good progress is being made on new energy infrastructure," Mr Calabria said, "but it has become clear Eraring Power Station will need to run for longer."
He emphasised that the extension would provide valuable time for the completion of essential renewable energy projects, large-scale storage solutions, and major transmission upgrades across the network.
Aligning with Long-Term Emissions Goals
Despite the continued use of coal, Origin asserts that the extended operation will not impact its commitment to reducing emissions. The company reaffirmed its 2030 reduction targets and its long-term ambition to achieve net zero emissions by 2050.
The timeline to close all four units in April 2029 aligns with an existing agreement reached with the NSW Government back in May 2024. Origin has recently invested in maintenance to improve the plant's flexibility but confirmed no further major overhauls are planned before its 2029 retirement.
Community and Employee Support Continues
Origin has pledged ongoing support for the workforce and local communities surrounding the Lake Macquarie site. The company's Future Directions program will continue to offer Eraring employees career guidance, training, and financial assistance. To date, this initiative has funded 525 training courses.
Furthermore, the $5 million Eraring Community Fund, established to aid communities affected by the eventual closure, will remain active until 2032. It has already committed nearly $1.5 million to 47 local projects.
Future of the Eraring Site
The Eraring site is poised to remain a key hub in the National Electricity Market well beyond 2029, thanks to its massive battery storage project. The Eraring Battery began commercial operation in late 2025, with its final stages expected to come online in the first quarter of 2027.
Once fully complete, this battery system will be one of the largest in the country, delivering 700MW / 3,160MWh of storage capacity. This will provide NSW with an average of 4.5 hours of stored energy, highlighting the site's transition from a coal-fired past to a renewable energy future.
