Origin has notified the NSW Government, the Australian Stock Exchange and the Australian Energy Market Operator that it will operate Eraring Power Station until April 2029.
Origin’s decision gives certainty to workers, the market and energy consumers across the state, as well as contributing to NSW’s 2030 emissions reduction target.
My number one job is keeping the lights on and putting downward pressure on power prices. NSW is making real progress replacing ageing coal-fired power stations. Since the election, we have increased the amount of renewable energy capacity in operation by almost 70%. That’s equivalent to Eraring’s capacity.
Current energy security projections show NSW is expected to have sufficient energy supply when Eraring closes in 2029, thanks to new renewable generation and storage coming online.
The agreement reached with Origin in 2024 gets the balance right and has so far not cost NSW taxpayers a single dollar.
Background information for media:
The NSW Government secured an agreement with Origin Energy in 2024 to underwrite the Eraring Power Station until August 2027, to ensure energy reliability and avoid price spikes for households and businesses. The agreement also requires Eraring’s closure by no later than April 2029, to support emissions reduction and provide certainty for investment in replacement generation.
The agreement remains in place without amendment. The NSW Government’s offer of two years of underwriting will end in 2027 and is not being extended.
To date, Origin has not opted into the underwriting arrangement and taxpayers have not paid a single dollar to keep Eraring operating. Origin has until March 2026 to notify the NSW Government if it will opt-in to the risk-sharing arrangement for the 2026-2027 financial year.
The latest energy security projections are found in the Energy Security Target Monitor report 2025.