Notice has been submitted to the
Origin CEO
'Origin's proposed exit from coal-fired generation reflects the continuing, rapid transition of the NEM as we move to cleaner sources of energy.
'To enable Origin to support the market's continued transition to renewables, we intend to utilise the Eraring site beyond any retirement of the coal-fired power station, with plans to install a large-scale battery.
'We have carefully weighed Eraring's future for some time, which has included extensive consultation with the NSW government to identify what options might exist for the future of the plant. Eraring is a high-quality asset, run by a skilled and dedicated team, that has worked tirelessly to supply reliable and affordable energy in NSW for four decades. However, it has become increasingly clear over the last few years that the influx of renewables has changed the nature of demand for baseload power.
'At the same time, the cost of renewable energy and battery storage is increasingly competitive, and the penetration of renewables is growing and changing the shape of wholesale electricity prices, which means our cost of energy is expected to be more economical through a combination of renewables, storage and Origin's fleet of peaking power stations.
'The mechanisms are now in place to guide future investment in supply, including the NSW Roadmap, and firm commitments have been made for other dispatchable capacity to come into the market over the coming years, as well as new transmission infrastructure, which are expected to more than compensate for any exit of Eraring.
'We will continue to assess the market over time, and this will help inform any final decisions on the timing for closure of all four units.
'We acknowledge this news will be challenging for many of our colleagues, suppliers and the local community. This is only the start of the process, and we commit to consulting with our people, and supporting them, through any potential closure,'
As part of any replacement plan for Eraring, Origin has well-progressed plans for a battery of up to 700 MW located on the site. Origin looks forward to participating in the NSW Government's Electricity Infrastructure Roadmap process, as appropriate, to support installation of as much of this battery as possible, before any closure of the Eraring coal-fired power station. Origin will also seek to bring online additional renewable and storage capacity, including a potential expansion of the Shoalhaven pumped hydro scheme, through the NSW Roadmap process.
Origin's current restoration and rehabilitation provision for the Eraring site is approximately
There is no change to Eraring operations today. Eraring site staff, off site contractors and suppliers will continue to be required, as long as the service is still required by the power station.
Origin will consult with its Eraring workforce about the timing of any potential retirement, as well as providing a generous support package during any transition period. This will include re-skilling, career support and redeployment into new roles, where possible. Origin intends to engage with governments and the local community to determine the most appropriate transition planning for any eventual closure. This includes tailored transitional support for employees, continuing with current community commitments, sponsorship and donations out to 2032, and the establishment of a community fund.
Any retirement of
Eraring is a 2880 MW black coal plant on the shores of
Contact:
Anneliis Allen
Tel: +61 428 967 166
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