Australia delays closure of coal-fired power plants due to renewable energy shortages

Australia is delaying the closure of its largest coal-fired power plant because it does not yet have enough wind and solar capacity to replace its baseload generator.

That’s according to Bloomberg, which reported that Origin Energy had received a request from the government of New South Wells, where the plant is located, to keep it in operation longer than initially planned. To this end, Origin will receive financial assistance of approximately $150 million per year.

The Eraring power plant has a capacity of 2.9 gigawatts across four units. Operator Origin Energy had planned to withdraw it due to cost pressures from wind and solar installations, which receive government support, but the New South Wells Government has asked it to extend the life of the facility. Two of the four units will remain in operation. When all four are operational, they provide a quarter of the state’s electricity consumption.

The State Government’s appeal to Origin Energy comes amid a growing chorus of warnings of power cuts if Australian utilities continue to phase out coal generation capacity at the current rate. The latest announcement came earlier this week from the Australian Energy Market Operator, which also cited the growing population as a reason for the increased risk of power outages.

The Eraring power station was scheduled to close in 2025, but has now been extended by two years in the hope that there will be enough wind and battery-powered solar power by then to meet New South Wales’ electricity needs. population.

Not surprisingly, environmentalists were unhappy with the New South Wales government’s decision, saying it would jeopardize the state’s transition plans.

Delaying the closure of Eraring not only jeopardizes our renewable energy targets, but also undermines efforts to combat climate change and ensure a sustainable energy future,” said the interim CEO of the Clean Energy Investor Group, quoted by the ABC.

Author: Irina Slav for Oilprice.com

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