A state government announced Tuesday that it will explore the potential of keeping the plant running after its scheduled shutdown in 2025, providing a lifeline to Australia’s largest coal-fired power station.
About 25% of the energy used in New South Wales, Australia’s most populated state, comes from the Eraring Power Station, which is located north of Sydney.
For the sake of achieving emissions goals and accelerating the switch to cleaner, more sustainable energy sources, the facility was scheduled for closure in August 2025.
But a recent policy review found parts of the state’s energy transition plan faced “multiple headwinds” and “the likelihood of success is low.”
It predicted the loss of the coal plant would mean cost increases for electricity users.
According to the assessment, average wholesale energy costs have gone up since Liddell, another coal-fired power plant, shut down in April.
Energy minister for New South Wales Penny Sharpe announced that the center-left administration had accepted the recommendation and will start discussions with Origin Energy, who owns Eraring.
“The case for Origin Energy to extend its timeframe for Eraring is there,” Sharpe said.
The chief executive of the Climate Council, Amanda McKenzie, encouraged the state government to close Eraring in 2025 as scheduled in order to reach carbon reduction goals on Monday.
Australia has made a commitment to eliminate all emissions by 2050.
According to data from the World Bank, its carbon dioxide emissions per person are among the highest in the world at 15.3 tonnes, surpassing US levels.
“The renewable energy boom is our best shot at tackling the climate crisis,” McKenzie said, adding the right policies could “create thousands of new clean energy jobs, drive down power bills” and “deliver reliable electricity supply for homes and businesses.”
Four coal-powered plants that will close in the next 10 to 15 years supply almost 70% of the electricity delivered in New South Wales.
Australia is currently the greatest exporter of metallurgical coal, which is used in the production of steel, and the second-largest exporter of thermal coal in the world, behind Indonesia.
