Highlights

  • Origin Energy will extend Eraring Power Station operations from August 2027 to April 2029.
  • The decision aligns with AEMO’s system security planning during the energy transition.
  • The AUD 5 million Eraring Community Fund will remain active until 2032.

Origin Energy Limited (ASX:ORG) has confirmed it will continue operating all four units of the Eraring Power Station in New South Wales until 30 April 2029, extending the plant’s previously scheduled closure date of August 2027. The decision follows consultation with the Australian Energy Market Operator (AEMO) and is intended to support electricity supply and system security during Australia’s ongoing energy transition.

Extension Supports NSW Energy Supply

Origin has formally advised AEMO that Eraring’s operations will be extended by nearly two years, enabling the coal-fired power station to continue contributing to the state’s electricity network. The extension aligns with risks outlined in AEMO’s recently released Transition Plan for System Security, which identified challenges associated with the pace of new infrastructure delivery and the reliability of existing generation assets.

Located on the shores of Lake Macquarie, Eraring Power Station has a generation capacity of 2,880MW and has been a key part of the National Electricity Market since becoming fully operational in 1984. Origin stated that maintaining Eraring’s output will assist in meeting electricity demand for households and businesses across NSW while major transmission and renewable projects progress.

Infrastructure Delivery and Market Conditions

Origin said the decision followed a review of customer needs, market conditions and the role Eraring plays within the NSW energy system. While progress continues on new energy infrastructure, including large-scale transmission projects and the Eraring Battery, the company noted additional time is required to ensure adequate replacement capacity is available.

Origin confirmed it does not plan to undertake further major maintenance overhauls before the plant’s retirement in April 2029, having already invested significantly in maintaining the four units over many years. The extension is not expected to alter Origin’s 2030 emissions reduction targets or its long-term goal of achieving net zero emissions by 2050, as set out in its 2025 Climate Transition Action Plan.

The April 2029 closure date remains consistent with the agreement reached between Origin and the NSW Government in May 2024.

Workforce and Community Support

Origin will continue supporting Eraring employees through its Future Directions program, which provides career planning, training, wellbeing and financial assistance. To date, the program has funded 525 training courses for employees preparing for future roles beyond the power station.

Community support measures will also remain in place. The AUD 5 million Eraring Community Fund, established to assist communities impacted by the plant’s eventual closure, will continue operating until 2032. Nearly AUD 1.5 million has already been committed to 47 local projects.

Eraring Site Beyond 2029

After the power station closes, the Eraring site will continue to play a role in the National Electricity Market through energy storage. The Eraring Battery began commercial operations in late 2025, with further stages expected to come online by early 2027. Once complete, the battery will provide 700MW / 3,160MWh of capacity, delivering an average of 4.5 hours of storage for NSW.

ORG shares were trading 2.49% higher at AUD 11.325 per share at the time of writing on 20 January 2026.