Eraring coal plant closure delayed by two years

Origin Energy will delay the closure of Australia’s largest coal-fired power station amid concerns renewable energy isn’t being added fast enough to keep pace with plans to quit fossil fuels. The utility agreed to a request from the New South Wales government to keep operating part of the 2.9 GW site — which accounts for about a quarter of power demand in Australia’s most populous state — until August 2027. Origin may receive compensation of as much as A$225-million a year from the state to help cover the cost of operations. Origin had planned to shutter Eraring as early as August 2025 as competition from cheaper solar and wind facilities has eroded profitability. More than 80% of Australia’s coal plants are likely to close by 2035 as a result of weaker earnings, declining reliability, and as states and companies aim to meet decarbonization targets, BloombergNEF said in an October report.