Origin to operate Eraring power station until April 2029

newy.com.au – Origin Energy will keep the Eraring power station on Lake Macquarie operating until April 2029 after notifying the NSW Government, the Australian Stock Exchange and the Australian Energy Market Operator (AEMO), Energy Minister Penny Sharpe said on Tuesday.

The decision extends the life of the state’s biggest coal generator, which supplies about a quarter of NSW electricity, and comes as governments and industry race to add new renewables, storage and transmission capacity before coal units retire.

Sharpe said the extension would “give certainty to workers, the market and energy consumers across the state”, adding: “My number one job is keeping the lights on and putting downward pressure on power prices.”

She said NSW was “making real progress replacing ageing coal-fired power stations” and claimed renewable energy capacity in operation had risen by almost 70% since the election, which she said was equivalent to Eraring’s capacity.

Sharpe said current projections showed NSW was expected to have enough supply when Eraring closes in 2029, pointing to new renewable generation and storage coming online and the NSW Energy Security Target Monitor report released in December 2025.

Under an agreement struck between the NSW Government and Origin in May 2024, the state offered to underwrite Eraring’s operation until August 2027, while requiring the station to close no later than April 2029 to support the state’s emissions reduction goals.

The deal includes an annual opt-in arrangement under which NSW would cover up to 80% of operating losses, capped at $225 million a year, while Origin would share a portion of any profits, capped at $40 million a year, if it chose to trigger the arrangement. The agreement also set expectations around generation and maintenance, including an aim to produce at least six terawatt hours a year and to substantially maintain the site’s workforce of about 220 people.

Sharpe said the agreement remained in place without amendment and that the government’s two-year underwriting offer would end in 2027 and would not be extended. She said Origin had not opted into the underwriting arrangement and “taxpayers have not paid a single dollar to keep Eraring operating”.

Origin has until March 2026 to tell the NSW Government whether it will opt in to the risk-sharing arrangement for the 2026-2027 financial year.