Australia’s largest coal-fired power station will continue to operate for a further two years following its expected closure. Eraring Power Station will remain open until 2027 after a deal was struck between the NSW Government and Origin Energy.

In a statement released by the NSW Government, the state could face potential energy shortages if the station were to close next year, as previously expected. Premier Chris Minns said the deal to extend the life of the station provides certainty for households and businesses.

“The people of New South Wales now have certainty that the government has a plan to ensure we have reliable energy, while we transition the workforce and the economy to net zero,” he said.

The agreement means that the state would make no upfront payments to Origin Energy, but would cover a loss of up to $450 million over the two year period. The temporary extension means the government has more time to prepare for a renewable energy transition.

Origin Energy CEO Frank Calabria said the deal is a good balance between the extension of the power station’s life and the security of energy for the state.

“This agreement supports Eraring to continue to play an important role in maintaining reliable power for businesses and households.”

Photo: Eraring power station by Nick Pitsas is available HERE and is used under a Creative Commons Licence. This image has not been modified.