Eraring Power Station (Eraring) is NSW’s largest power station at 2880MW. It provides around 18 per cent of the State’s current electricity needs.
On 17 February 2022, the owner of Eraring – Origin Energy Limited (Origin) – gave notice it would close Eraring as early as August 2025. This is seven years earlier than previously expected.
In August 2023, the Australian Energy Market Operator released its annual Electricity Statement of Opportunities report, which found that a reliability gap would emerge in NSW from 2025/26 if Eraring closes in August 2025.
In September 2023, the NSW Government announced it would engage with Origin Energy on its plans for Eraring consistent with recommendations made in the NSW Electricity Supply and Reliability Check Up.
In November and December, NSW Government announced NSW Electricity Infrastructure Roadmap tenders had resulted in support for around 2,350MW of new renewable generation, storage and firming infrastructure.
In May 2024, the Australian Energy Market Operator released and update to its 2023 Electricity Statement of Opportunities finding that despite this additional investment, there is a forecast reliability gap in NSW from 2025/26 if Eraring closes in August 2025.
On 23 May 2024, the NSW Government announced Origin had agreed to operate Eraring until August 2027 in return for Government underwriting against a share of its potential financial loss. If Origin accepts the underwrite, it is also required to pay a share of any profit to the Government. A summary of the agreement is available here.
On 4 June 2024, the Minister tabled the agreement with Origin in Parliament.
