Brookfield Asset Management, which is in the process of acquiring Origin Energy, says it will be flexible about the closure of Eraring power station while indicating it wants to exit coal-fired assets as soon as possible.
Origin has signed a $18.7 billion takeover deal with Brookfield Asset Management and MidOcean Energy, which have pledged to build 14 gigawatts of new renewable and storage generation in Australia over the next decade.
Origin announced in February last year that it was bringing forward the closure date for the plant by seven years to August 2025.
The company has since said that it would continue to monitor the market regarding the final closure date in response to industry speculation that the 2800 megawatt generator would need to remain open to ensure grid stability beyond 2025.
Premier Chris Minns was among those advocating for the plant to remain open during the state election campaign. He also raised the possibility that the government might buy back the asset.
In a statement to investors on Monday night, Brookfield said, while it was keen to progress the closure of Eraring, it did not want consumers to be adversely affected.
A massive amount of new renewable generation and storage capacity would need to come online for this to occur.
"This is expected to enable the retirement of one of Australia's largest coal-fired power generation plants, Eraring, and will be undertaken with the highest regard for network reliability and security," Brookfield said in a statement.
The incoming government is expected to meet with Brookfield to discuss its plans for Eraring in coming weeks.
In addition to Brookfield's proposed clean energy investment, work is also underway on the commissioning of three super batteries.
Final planning approval was received last month for Energy Co.'s 850 megawatt Waratah Super Battery at the former Munmorah power station site. The battery is expected to be operational in 2025.
Origin and AGL are also progressing plans for grid scale batteries at the Eraring and Liddell sites.
AEMO chief executive Daniel Westerman said timely investment in the grid was needed as Australia ended its traditional dependency on coal-fired generation and faced delays on major projects including Snowy Hydro's Hunter Power Project at Kurri.
A Senate Estimates hearing was told last month that the Hunter Power Project at Kurri would not be fully operational until December 2024, more than 18 months after the closure of Liddell Power Station.
Origin, Brookfield and EIG have entered into a binding agreement, which Origin Energy's board intends to unanimously recommend shareholders support.
The final offer increases the value of the proposal to $8.91 for each Origin share - a 53 per cent premium to the company's share price before the initial offer was made in November.
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