The future of Australia’s largest coal-fired power station, Eraring Power Station, is in doubt as the state government considers extending its closure beyond the scheduled date of 2025. Situated north of Sydney, this power station currently provides about 25% of the electricity for New South Wales, the most populous state in Australia.
The initial plan was to shut down the facility in August 2025 to meet emission reduction targets and promote a transition towards cleaner and more sustainable energy sources. However, a recent policy review revealed multiple challenges and low chances of success for certain aspects of the state’s energy transition plan.
The review also projected potential cost increases for electricity consumers if the coal plant is closed. It highlighted the rise in average wholesale energy prices since the closure of another coal-fired station, Liddell, in April. In response to this review, the New South Wales energy minister, Penny Sharpe, stated that the government would engage in discussions with the power station’s owner, Origin Energy, to explore the possibility of extending Eraring’s operating time.
The Chief Executive of the Climate Council, Amanda McKenzie, previously urged the state government to stick to the original plan of closing Eraring in 2025 to achieve emissions reduction targets. Australia has committed to reach net-zero emissions by 2050. The country’s carbon dioxide emissions per capita are among the highest globally, surpassing even the United States.
According to McKenzie, embracing the renewable energy sector provides the best opportunity for addressing the climate crisis. She emphasized that implementing the right policies could not only create thousands of clean energy jobs but also reduce power bills and ensure a reliable electricity supply for homes and businesses.
In New South Wales, approximately 70% of the electricity supplied comes from four coal-powered plants that are scheduled for retirement within the next 10 to 15 years. Australia is presently the world’s second-largest exporter of thermal coal, after Indonesia, and the largest exporter of metallurgical coal used in steel production.