Australia’s largest coal plant gets another two-year extension despite climate concerns

Australia’s biggest coal-fired power station will continue burning fossil fuels for an additional two years, pushing its closure date to April 2029 and drawing sharp criticism from environmental advocates.

The Eraring power plant in Lake Macquarie, New South Wales, operated by Origin Energy, has now received its second major extension in recent years. Originally scheduled to shut down in 2025, the facility first received a reprieve until August 2027. Now, citing ongoing concerns about the national electricity grid’s capacity to meet energy demand, authorities have granted another two-year extension.

This decision highlights the ongoing tension between Australia’s climate commitments and energy security concerns. While the NSW environment minister defended the extension as somehow contributing to the state’s emissions reduction goals, climate advocacy groups condemned the move as a “disaster” for environmental progress.

The repeated delays in closing Eraring underscore the challenges Australia faces in transitioning away from coal power while maintaining grid stability. As the country’s largest coal-fired facility, Eraring plays a significant role in the national energy supply, making its eventual closure a complex balancing act between climate action and energy reliability. The extension means Australia’s coal dependence will continue well into the next decade, potentially complicating the nation’s ability to meet international climate targets and reduce greenhouse gas emissions from its electricity sector.