Eraring likely to stay open past 2025 as NSW starts talks
The NSW government will begin talks with Origin Energy on a deal to keep the giant Eraring power station open past 2025, after a report found that prices would spike and the state would face reliability risks if the plant was switched off.
After months of deliberation, NSW Energy Minister Penny Sharpe has released the findings of a “check-up” of the state’s energy supply and unveiled the government’s next steps to shore up the state’s energy supply.
The report by energy expert Cameron O’Reilly included a recommendation which the government has accepted to start talks with Origin regarding the future of coal-fired Eraring, which is the largest in NSW and supplies about 25 per cent of the state’s needs.
The NSW government will begin talks with Origin Energy to keep Eraring power station open longer. Bloomberg
The report found that to stick with current timeline for closure would see the state run the risk of blackouts and major energy price spikes.
“There could be a price impact which obviously concerns us… and the reliability issue [about Eraring’s closure] is backed up by the most recent [AEMO] report as well,” Ms Sharpe said. “We’re not gambling with reliability as we make the transition.”
Her comments echoed Mr O’Reilly’s findings that Eraring was still playing a vital role shoring up the state’s energy supply and ensuring affordability, given Australian Energy Regulator data now shows prices in the state spiked following the closure of AGL’s Liddell power station in April.
“Eraring is a profitable asset and has a decade left of its technical life. Origin Energy has a very large existing customer base it cannot yet supply without Eraring,” Mr O’Reilly’s report said.
“It is also clear that the interests of NSW and
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