Origin Energy has advised the Australian Energy Market Operator that it will extend the operation of all four units at Eraring Power Station from 19 August 2027 to 30 April 2029, extending the plant’s life by almost two years beyond its previously scheduled closure.
Origin said the decision was made to support electricity supply in NSW during the transition of the energy system and to reduce system security risks identified by AEMO in its recently released Transition Plan for System Security. The company said the extension will help maintain reliable power for households and businesses while new generation, storage and transmission projects are completed.
Eraring Power Station is a 2,880MW black coal plant on the shores of Lake Macquarie and became fully operational in 1984. Origin had previously targeted closure as early as August 2027, subject to market conditions.
Energy analysts said the decision to extend Eraring reflects delays in delivering replacement renewable generation, storage and transmission at the pace required in NSW. Climate Councillor and energy sector expert Associate Professor Joel Gilmore pointed to the plant’s age and operating record, noting that ageing coal assets become less reliable as they remain in service for longer.
“This is why we need to accelerate the roll out of renewable energy,” Mr Gilmore said, arguing that extended reliance on older coal plant increases the risk of outages at times of high demand.
Finance and energy analyst Johanna Bowyer from the Institute for Energy Economics and Financial Analysis said repeated extensions to coal closure timelines can have flow-on effects for prices and investment. She said uncertainty around closure dates can deter investment in replacement generation and prolong higher wholesale electricity prices.
“Clear, credible coal closure dates are essential if we want new clean energy built on time,” Ms Bowyer said.
Analysts warn of reliability and price impacts
Analysts also said that continuing to rely on extended coal operations can delay lower-cost options such as energy efficiency measures and household upgrades,
Origin CEO Frank Calabria said the company had assessed customer needs, market conditions and Eraring’s ongoing role in the NSW power system.
“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,” Mr Calabria said.
Origin said the extension provides additional time for renewable energy, storage and transmission projects to come online, noting ongoing uncertainty about the reliability of Australia’s ageing coal and gas fleet. The company said it has invested heavily in maintaining Eraring’s four units to support reliable and flexible operation, but does not plan further major maintenance overhauls ahead of the plant’s retirement in April 2029.
Origin said the revised closure date is consistent with its existing agreement with the NSW Government reached in May 2024 and is not expected to affect its 2030 emissions reduction targets or its long-term aim of reaching net zero emissions by 2050, as outlined in its 2025 Climate Transition Action Plan.
Workforce support and the site’s future role
Origin said it will continue to support employees through its Future Directions program, which provides career planning, training, wellbeing and financial assistance. The company said the program has already funded 525 training courses.
The $5 million Eraring Community Fund will also remain in place until 2032. Almost $1.5 million has been committed to 47 projects intended to deliver lasting benefits for communities affected by the plant’s eventual closure.
Beyond 2029, Origin said the Eraring site will remain part of the National Electricity Market through the Eraring Battery. Stages one and three entered commercial operation in late 2025, with remaining stages expected to come online in the first quarter of 2027. Once complete, the battery will provide 700MW / 3,160MWh of capacity, with an average dispatch duration of about 4.5 hours.
Unions welcome certainty while pressing supply chain issues
The Mining and Energy Union said the extension provides clearer short-term certainty for workers at Eraring Power Station, but warned that the implications for the coal supply chain must also be addressed.
There are about 500 directly employed and contractor workers at Eraring, along with a further 300 workers at the neighbouring Myuna Colliery, which supplies coal to the power station.
MEU Northern Mining and NSW Energy District President Robin Williams said speculation about a possible extension had caused uncertainty for workers and their families.
“This decision finally provides some certainty for the employees at Eraring,” Mr Williams said.
The union said Origin does not currently have a long-term coal supply contract in place with Myuna, despite the mine’s dependence on the power station and its proximity to the site. It said securing coal supply through to 2029 would support local jobs and help ensure efficient operation over the extended period.
The MEU also said it welcomed early indications from the Federal Government’s Net Zero Economy Authority about enforceable transition support for workers and supply-chain businesses affected by coal closures.
