Origin Energy Limited (ASX: ORG) is keeping Australia’s largest coal-fired power station running longer than planned. This Origin Energy update confirms that all four units at Eraring Power Station will now operate until 30 April 2029. This represents an extension of nearly two years from the previous closure date of 19 August 2027.
  
Figure 1: Origin Energy corporate signage at the Company’s headquarters. [Power Technology]
The decision follows warnings from the Australian Energy Market Operator about system security risks during the energy transition. The Origin Energy update stated that Eraring will continue supporting a reliable electricity supply to New South Wales households and businesses.
Why Origin Energy Is Delaying Eraring’s Retirement
Origin Energy ASX ORG CEO Frank Calabria said the Company assessed customer needs, market conditions and Eraring’s vital role before reaching this decision. He noted that while renewable infrastructure is progressing well, additional time is needed before new projects can replace Eraring’s generation capacity.Calabria emphasised that Australia’s aging coal and gas fleet faces reliability challenges.
Origin Energy electricity generation at Eraring provides a buffer for renewable energy, storage and transmission infrastructure to come online. This prevents potential supply gaps that could affect energy security across New South Wales.
AEMO Transition Plan Highlights Risks
The Australian Energy Market Operator recently released its Transition Plan for System Security. This document identified specific risks to NSW’s electricity supply during the shift toward renewable sources.
Figure 2: Large-scale battery storage infrastructure illustrating the type of grid-scale energy storage being developed under Origin Energy’s Eraring Battery project. [Economic Times]
Origin Energy ASX ORG referenced this AEMO analysis as a key driver behind the extension. Origin Energy electricity generation at Eraring Power Station delivers 2,880 megawatts of capacity from Lake Macquarie. The Origin Energy update reveals that the facility became fully operational in 1984 and has served NSW for over four decades.
Investment Strategy Remains Focused
Origin Energy ASX ORG will not undertake further major maintenance overhauls before April 2029. The Company has invested significantly in maintaining all four units over many years.
The existing maintenance foundation allows Eraring to continue operating effectively through the extended timeline. The Company confirmed that the extension aligns with its existing agreement with the NSW Government from May 2024.
Emissions Targets Unchanged
This Origin Energy update confirmed that extending Eraring operations will not affect its 2030 emissions reduction targets. The Company remains committed to achieving net zero emissions by 2050 as outlined in its 2025 Climate Transition Action Plan.
Origin Energy continues to support Eraring employees through its Future Directions program. This initiative offers career development, learning opportunities, well-being support and financial assistance. The program has already funded 525 training courses for workers preparing for the facility’s eventual closure.
$5 Million Fund Supports Local Projects
The $5 million Eraring Community Fund remains active until 2032. Origin Energy established this fund to support communities affected by the power station’s eventual closure.
The fund has committed nearly $1.5 million across 47 community projects. These initiatives address local needs and help communities prepare for the economic transition following Eraring’s retirement.
Eraring Battery Project Transforms Site For Future Energy Role
Beyond 2029, the Eraring site will maintain significance within the National Electricity Market. Origin Energy electricity generation is transitioning from coal to battery storage at the location.
Figure 3: Aerial view of Eraring Power Station in New South Wales, Australia’s largest coal-fired power facility, now approved to operate until April 2029. [Guardian Australia]
The Eraring Battery commenced commercial operation in late 2025 with stages one and three. Final stages are anticipated to come online during the first quarter of 2027. Once complete, the Eraring Battery will deliver 700 megawatts of power across 3,160 megawatt hours of storage. This provides an average of 4.5 hours of storage capacity for NSW.
Share Price Performance
Origin Energy ASX ORG shares closed at $11.33 on 20 January 2026. The stock trades within a 52-week range of $8.62 to $13.13 per share. The Company maintains a market capitalisation of $19.03 billion.
Figure 4: Origin Energy Limited (ASX: ORG) one-year share price performance, highlighting market response leading up to the Eraring extension announcement. [ASX]
Investors will monitor how the Eraring extension affects Origin Energy’s earnings profile through 2029. The extension provides revenue visibility while the Company completes battery storage installations at the site.
About Origin Energy Limited
Origin Energy Limited is an integrated energy company operating across electricity generation, natural gas production and energy retailing. The Company serves approximately 4.2 million customer accounts across Australia.
Origin Energy electricity generation portfolio includes electricity generation from coal, gas and renewable sources. The Company operates retail energy businesses in NSW, Victoria, Queensland and South Australia. Headquartered in Sydney, Origin Energy is listed on the Australian Securities Exchange under the ticker ORG.
FAQ
Q1. When will Origin Energy close Eraring Power Station?
 Ans. Origin Energy will close all four units at Eraring Power Station on 30 April 2029.
Q2. Why did Origin Energy extend Eraring operations?
 Ans. Origin Energy extended operations to address system security risks identified by AEMO and support reliable electricity supply during the energy transition.
Q3. Will the extension affect Origin Energy’s climate targets?
 Ans. The Company stated the extension will not affect its 2030 emissions reduction targets or net zero by 2050 ambition.
Q4. What is the Eraring Battery project?
 Ans. The Eraring Battery is a 700MW storage facility being built at the power station site to provide 4.5 hours of average storage capacity.
