Origin shares climb after extending Eraring Power Station operations
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The news: Origin traded higher after announcing an extension to the operations of all four units at the Eraring power station, pushing the expected closure date from 19 August 2027 to 30 April 2029.
Shares rose 2.71% to $11.35 per share at 2:20pm AEDT.
RBC Capital markets analyst Gordon Ramsay said the latest extension reflects the slower than expected rollout of renewable energy in Australia, as well as growing concerns over the reliability associated with Australia’s aging coal-fired generation fleet and the potential implications for electricity supply and prices.
RBC Capital maintains a sector perform rating on Origin, with a price target of $13.50 per share.
Origin Energy to extend Eraring Power Station operations to 2029
The news: Origin Energy will extend operations of all four units of the coal-fired Eraring power station from an expected close date of 19 August 2027 to 30 April 2029.
The context: Origin said that extending operations of the 2,880 megawatt black coal plant will help mitigate risks outlined in the Australian Energy Market Operator’s (AEMO) Transition Plan for System Security, which was released in December 2025. It has already informed AEMO.
Origin does not intend to invest in “further major maintenance overhauls ahead of the plant’s April 2029 retirement”. The energy company also said that extending Eraring’s operations is consistent with an existing closure agreement signed with the NSW government in May 2024.
The company also said the move is not expected to affect its 2030 emissions reduction targets or ambition to hit net zero by 2050.
Origin said it will continue to prepare Eraring employees for the eventual closure of the plant through its Future Directions program, which has already funded 525 training courses. The $5 million Eraring Community Fund will also remain in place until 2032.
What they said: “We’ve taken the decision to extend Eraring’s operations after assessing a range of factors, including the needs of our customers, market conditions and the important role the plant plays in the NSW energy system,” Origin CEO Frank Calabria said.
“Good progress is being made on the delivery of new energy infrastructure including major transmission works and projects like our large-scale battery at Eraring, but it has become clear Eraring Power Station will need to run for longer to support secure and stable power supply.
“Our decision to keep Eraring operating until April 2029 provides more time for renewables, storage and transmission projects to be delivered, and reflects uncertainty regarding the reliability of Australia’s aging coal and gas fleet.”
The source: ASX
