Australia considers extending operation of its largest coal-fired power plant beyond 2025

Australia is considering extending operation of the 3GW black coal-fired Eraring power plant in New South Wales. The plant’s operator, Origin Energy, said last year that it would close the plant as early as 2025 due to poor operating economics. However, the current situation in the Australian electricity market and uncertainty over whether renewable energy sources can be developed quickly enough could reverse this decision.

Origin Energy announced last year that worsening operating economics at its black coal-fired Eraring power plant would lead to its closure as early as 2025, seven years earlier than originally planned.

In response to rising electricity prices and growing doubts that renewable energy sources will be developed quickly enough to replace fossil fuel-fired generation, the New South Wales government has begun considering extending the operation of Australia’s largest coal-fired power plant.

Climate Change Minister Penelope Sharpe said, according to Reuters, that a government-commissioned study found the Eraring power plant could be needed in the future, so the government will begin talks with Origin Energy about its future.