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Two-year extension considered for NSW’s largest coal-fired power plant
Australia is considering extending the life of the Eraring coal fired power plant, the country's largest, due to surging power prices and concerns about the slow progress of renewable energy. The New South Wales government has accepted the recommendations of a report that makes the case for delaying the plant's closure and will engage with Origin Energy, the plant's owner, about its future.
Origin Energy previously announced that it would shut down Eraring in 2025, citing falling power prices. However, the government's report identifies the plant as a profitable asset and acknowledges Origin's commercial interest in deferring its closure.
In addition to extending the life of Eraring, the government report recommends improving the grid to support more low-emissions generation and considering investments in gas storage to support future gas plants in NSW.
Electricity from coal is associated with high emissions of the greenhouse gas CO2. But plans to take Australia's largest coal-fired power plant off the grid in two years are faltering - out of fear of the price of electricity.