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Australia's plan to close largest coal power station in doubt

  • By Al Mayadeen English
  • Source: Agencies
  • 5 Sep 2023 10:48
2 Min Read

A recent policy evaluation discovered that certain aspects of the state's energy transition plan were facing "multiple headwinds" and "the likelihood of success is low."

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  • The Australian Parliament created landmark new laws last March to make the nation's biggst greenhouse gas polluters reduce their emissions or pay for carbon credits. (AP)
    The Australian Parliament created landmark new laws last March to make the nation's biggst greenhouse gas polluters reduce their emissions or pay for carbon credits. (AP)

The largest coal-fired power plant in Australia received a lifeline on Tuesday when a state administration announced it would look into the potential of keeping it operational until its scheduled shutdown in 2025.

New South Wales, the state with the most residents in Australia, receives about 25% of its energy from the Eraring Power Station, located north of Sydney.

For the sake of achieving emissions goals and accelerating the switch to cleaner, more sustainable energy sources, the facility was scheduled for closure in August 2025.

However, a recent policy evaluation discovered that certain aspects of the state's energy transition plan were facing "multiple headwinds" and "the likelihood of success is low."

It is expected that the closure of the coal plant will result in higher electricity prices for consumers.

Since the closure of Liddell, another coal-powered station, in April, the evaluation noted an increase in the average wholesale energy price.

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Energy minister for New South Wales Penny Sharpe announced that the center-left administration had accepted the recommendation and will start discussions with Origin Energy, who owns Eraring.

"The case for Origin Energy to extend its timeframe for Eraring is there," Sharpe said.

Amanda McKenzie, CEO of the Climate Council, encouraged the state government on Monday to close Eraring in 2025 as scheduled in order to reach carbon reduction goals.

Australia has committed to having no emissions at all by 2050.

According to World Bank data, it produces 15.3 tonnes of carbon dioxide per person, which is more than the US.

"The renewable energy boom is our best shot at tackling the climate crisis," McKenzie said, adding the proper policies could result in "thousands of new clean energy jobs, drive down power bills" and "deliver reliable electricity supply for homes and businesses."

Four coal-powered plants that will close in the next 10 to 15 years supply almost 70% of the electricity delivered in New South Wales.

Australia is currently the greatest exporter of metallurgical coal, which is used in the production of steel, and the second-largest exporter of thermal coal in the world, behind Indonesia.

  • CO2 emissions
  • Australia
  • New South Wales
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