Australia's biggest coal plant shutdown postponed by 2 years due to delays.

A recent agreement between Origin Energy and the New South Wales (NSW) Government has been reached in regards to the closure of Eraring Power Station, Australia's largest coal-fired power plant. Originally scheduled to shut down in 2025 as part of the state's shift towards renewable energy, the plant will now continue operations until August 19, 2027.

One of the main concerns surrounding the closure of the power station was the impact it would have on the employees and the local community. To address this, Origin has committed to providing a transition support package for the employees, including career transition support, re-skilling, and redeployment opportunities. Additionally, a $5 million fund has been set up to support the communities affected by the closure.

As part of the agreement, Origin has also pledged to deliver six TWh of electricity during the two-year extension period. In the event that the plant makes a loss, the government has agreed to compensate Origin. On the other hand, if the plant generates a profit, Origin will pay 20% of the agreed amount to the NSW Government, with a cap of $40 million per year.

Origin CEO Frank Calabria believes that this agreement strikes the right balance, allowing Eraring to continue supporting the state's electricity supply while providing compensation to Origin in case of any economic challenges. He also emphasized the importance of the plant in maintaining a reliable power source for businesses and households, especially during a time of uncertainty regarding the development of new renewable energy infrastructure.

Both Origin and the government have assured that the operations at Eraring will align with Origin's 2023 emissions reduction targets and the long-term goal of achieving net zero emissions by 2050. However, this decision has been met with criticism from the Australian Conservation Foundation's climate policy advisor, Annika Reynolds, who sees it as a setback for climate action in the country.

The foundation estimates that the power station is responsible for almost three percent of Australia's total greenhouse gas emissions. This decision comes after the Electricity Supply and Reliability Check Up report recommended extending the life of the power station in September. It remains to be seen how this agreement will impact the state's overall transition towards renewable energy and its efforts to combat climate change.

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