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, the 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 December 2023, the Energy Security Target Monitor (ESTM) Report was released highlighting that additional actions may be necessary to ensure a reliable electricity supply following the scheduled retirement of Eraring power station in August 2025.
In May 2024, the Australian Energy Market Operator released an update to its 2023 Electricity Statement of Opportunities finding that despite the 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.
On 6 August 2024, the Minister tabled a summary of the evaluation of the agreement with Origin and related commercial advice and electricity modelling in Parliament.
The NSW Government has announced a suite of measures to support the transition to more affordable, reliable renewables and further reduce reliability risks, including:
- securing at least 2.2 of 6 gigawatts of renewable generation in the first National Tender under the Commonwealth Government's Capacity Investment Scheme.
- making 8 gigawatts of access rights available across the Central-West Orana and South West Renewable Energy Zones.
- introducing legislation to establish the Energy Security Corporation this year, with the plan to invest its $1 billion in seed funding in critical storage projects starting in 2025-26.
- providing $8.4 million in grants to Transgrid and AEMO to hire more engineers to fast-track connection of four major battery projects.
- expanding the Peak Demand Reduction Scheme to provide financial incentives for household batteries, which could take between $1,600 and $2,400 off the up-front cost.
- making it easier to get planning approval for wind, solar, and storage projects.
Timeline of NSW Government Eraring Update
