NSW taxpayers could be on the hook for as much as $150 million a year for every year the Eraring coal-fired power plant remains open, energy analysts predict, with the Minns government refusing to detail the terms of its negotiations with owner Origin Energy ahead of a likely extension beyond 2025.
The analysis is partly based on details of Origin’s negotiations with the former government over a potential purchase of Eraring in mid-2021, released through freedom of information laws. It projects the potential cost of underwriting the plant’s operation by examining coal spot prices, the potential impact on wholesale energy prices and the likely capital expenditure needed to keep the plant open.
NSW taxpayers could be on the hook for as much as $150 million a year for every year the Eraring coal-fired power plant remains open.but walked away from a potential deal over concerns about the terms of a deal involving the underwriting of the coal-fired power station. The government has been concerned about a so-called “reliability gap” in the energy grid caused by delays in the rollout of major renewable energy projects. However, whether a gap exists is subject to debate.