Origin Energy has made the call to leave the lights on at Eraring Power Station until 2029, extending the operation of all four units of the country’s largest power station out past the original closure of 2027.
Pressure has been mounting on Origin to extend the life of the power station after a warning from the Australian Energy Market Operator (AEMO) that the grid was not ready to lose Eraring for fear of widespread blackouts.
Origin’s CEO Frank Calabria said they’ve made the decision in a bid to support energy supply in NSW through the energy transition.
“Our decision to keep Eraring operating until 2029 provides more time for renewables, storage and transmission projects to be delivered, and reflects uncertainty regarding the reliability of Australia’s aging coal and gas fleet.
“We are pleased to provide greater certainty for the community, our people and the market about Eraring’s future, and I want to commend the professionalism and focus of the Eraring team in continuing to maintain and operate the plant reliably given the vital role it continues to play for energy users in NSW.
“Good progress is being made on the delivery of new energy infrastructure including major transmission works and projects like out large-scale battery at Eraring, but it has become clear Earing Power Station will need to run for longer to support secure and stable power supply,” Frank said.
Origin approved the fourth stage of the Eraring battery project in December last year, committing $80 million to construct the fourth stage that will lift the dispatch duration of stage two to nearly six hours allowing it to store electricity produced during the day for release when needed most.
Construction of the fourth stage was set to begin before the end of 2025 and is expected to come online in the first quarter of 2027.
Origin said the battery project is on track and once completed will be 700MW/3,160 MWh in size and provide four-and-a-half hours of storage on average.
Origin’s Head of Energy Supply and Operations Greg Jarvis said it will be the largest approved battery energy storage system in the Southern Hemisphere.
“As Australia continues its energy transition, large-scale batteries will be essential for reliable supply of energy, supporting more renewables coming online and helping ease pressure on wholesale prices.
“Batteries can respond instantly to changes in supply and demand, which is why they’re becoming a core part of Australia’s renewable energy future.
“We’re excited to add additional storage capacity at Eraring to cover the evening peak – the period of highest electricity demand – as we continue to transform the site to support the reliability and security of electricity supply through the energy transition,” he said.
