Extending Eraring’s operation reduces risks to system security highlighted by AEMO in its recently released Transition Plan for System Security and enables the plant to continue to support reliable power to NSW households and businesses.
Origin CEO Frank Calabria said, “We’ve taken the decision to extend Eraring’s operations after assessing a range of factors, including the needs of our customers, market conditions and the important role the plant plays in the NSW energy 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.
“Our decision to keep Eraring operating until April 2029 provides more time for renewables, storage and transmission projects to be delivered, and reflects uncertainty regarding the reliability of Australia’s aging coal and gas fleet.
“We are pleased to provide greater certainty for the community, our people and the market about Eraring’s future, and I want to commend the professionalism and focus of the Eraring team in continuing to maintain and operate the plant reliably given the vital role it continues to play for energy users in NSW.”
Origin has made significant investment in the maintenance of Eraring’s four units over many years which has supported reliable and increasingly flexible operations. Origin does not intend to invest in any further major maintenance overhauls ahead of the plant’s April 2029 retirement.
The extension of Eraring operations is not expected to affect Origin’s 2030 emissions reduction targets and long-term ambition to achieve net zero emissions by 2050, as outlined in the company’s 2025 Climate Transition Action Plan. The decision to close all four units in April 2029 is consistent with the terms of the existing agreement reached with the NSW Government in May 2024.
Origin will continue to support Eraring employees through its Future Directions program, which offers career, learning, wellbeing and financial assistance, along with up-to-date information and resources. The program has already funded 525 training courses.
In addition, the $5 million Eraring Community Fund, established to support communities affected by the plant’s eventual closure, will remain in place until 2032. To date, the Fund has committed nearly $1.5 million to 47 community projects.
Beyond 2029, the Eraring site will remain a significant part of the National Electricity Market. The Eraring Battery commenced commercial operation in late 2025 (stages one and three), with the final stages anticipated to come online in the first quarter of 2027, including the recently approved fourth stage which extends the dispatch duration of stage two to nearly six hours. Once all stages are complete, the Eraring battery will deliver 700 MW / 3,160 MWh, providing an average of 4.5 hours of storage capacity in NSW.
Eraring Power Station, a 2,880 MW black coal plant located on the shores of Lake Macquarie, became fully operational in 1984. Origin had previously targeted closure as early as August 2027, subject to market conditions.
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