Australia is considering the possibility of extending the operational life of Origin Energy's Eraring coal-fired power plant, which is currently the largest in the country. This potential extension comes after Origin Energy announced plans last year to close Eraring in 2025, seven years ahead of schedule, citing difficulties in generating profits due to declining power prices.

However, the landscape has shifted with power prices on the rise, and concerns about the pace of renewable energy development have emerged. These factors have prompted a reevaluation of Eraring's closure timeline.

The New South Wales (NSW) state government has commissioned a report that supports the case for extending Eraring's operational life. NSW's Minister for Climate Change, Penelope Sharpe, stated that the government accepts the report's recommendations and will engage with Origin Energy regarding the plant's future.

The report noted that Eraring is a profitable asset, and Origin Energy has a strong commercial interest in delaying its closure. Origin Energy, which recently agreed to a takeover offer from a consortium led by Canada's Brookfield, expressed its willingness to collaborate with the state government to address economic challenges while ensuring electricity supply reliability.

In addition to the potential extension of Eraring, the report recommended grid improvements to accommodate more low-emission power generation and suggested considering investments in gas storage to support the expected increase in gas plants in the state by 2024.

The state of NSW has accepted most of the report's recommendations, signaling a willingness to adapt its energy strategy in response to evolving market dynamics.