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- Origin Energy (ORG) is proposing to accelerate the company’s exit from coal-fired power generation
- The Australian Sydney-based public energy company is aiming to be a leader in the country’s energy transition towards net-zero emissions
- The company has submitted notice about potentially retiring the Eraring power station ahead of schedule
- Potential early retirement could come at the end of the required three-and-half-year notice period, which would come in August 2025
- Origin Energy last traded at $6.10 on February 16
Origin Energy (ORG) is proposing to accelerate the company’s exit from coal-fired power generation.
The Sydney-based public energy company is aiming to be a leader in the country’s energy transition towards net-zero emissions.
The company has submitted notice about potentially retiring the Eraring Power Station ahead of schedule. The required notice was filed with the Australian Energy Market Operator (AEMO).
Potential early retirement could come at the end of the required three-and-half-year notice period. That would mean the power station could be retired in August 2025.
Origin had previously targeted closing the power station at the end of its life expectancy in 2032.
The company said the move is reflective of the “rapidly-changing conditions in the National Electricity Market, which are increasingly not well suited to traditional baseload power stations and challenging their viability”.
“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,” said Origin CEO Frank Calabria.
“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.”
Origin has plans for a battery of up to 700 MW located on the site, as part of any replacement plan for the Eraring Power Station.
Eraring is a 2880 MW black coal plant on the shores of Lake Macquarie. It has four units and became fully operational in 1984.
Origin’s current restoration and rehabilitation provision for the Eraring site is approximately $240 million, based on the previous closure date of 2032.
Origin Energy last traded at $6.10 on February 16.
