Operators stated Thursday that Australia’s largest coal-fired power plant will close in 2025, many years earlier than expected, citing the low cost of renewables as a reason.
The “influx of renewables” was “undermining the profitability” of Origin Energy’s massive Eraring facility north of Sydney, the company told investors.
The facility now has four 720-megawatt coal-fired generators and one 42-megawatt diesel generator, producing about a quarter of the electricity to Australia’s most populated state, New South Wales.
“Today we have signalled the potential to accelerate Eraring’s closure to mid-2025,” Origin Energy CEO Frank Calabria said, acknowledging the move would be “challenging” for hundreds of staff.
Learning has been operational for almost 40 years and was due to be decommissioned in 2032.
“The reality is the economics of coal-fired power stations are being put under increasing, unsustainable pressure by cleaner and lower-cost generation, including solar, wind and batteries,” he said.
The business plans to repurpose the plant and add a massive 700-megawatt battery for a total cost of Aus$240 (US$173) million.
Despite the conservative government’s insistence on supporting new projects, Origin is the latest Australian energy company to announce the early closure of coal assets.
Australia is one of the world’s top coal producers, and the climate-damaging fuel is a significant source of money for the country.
Several coal mines and plants are also located in fiercely contested electoral seats, meaning both the government and the opposition Labor party have tried to avoid irking coal-backing local voters.
