The State Government has delayed making a decision about whether to intervene to keep Eraring Power Station open beyond its scheduled 2025 closure date.
It was due to announce its response to a recommendation to keep 2880 megawatt plant open this week.
The O'Reilly Review recommendation was based on the fact that Australia's clean energy transition is significantly behind schedule, resulting in concern about the impact that closing Eraring could have on households and business bills.
The Government announced on Monday afternoon that it would push back the release of the O'Reilly Review report for several weeks to allow it more time to determine its response.
It is estimated it would cost taxpayers between $200 and $400 million a year to keep Eraring, which supplies about 20 per cent of the state's energy needs, going beyond mid-2025.
This would include compensation to the plant's owner Origin Energy, or Brookfield, which is in the process of talking over the company.
Business Hunter last week welcomed the prospect of Eraring staying open beyond 2025 in order to provide energy security.
"There has been immense trepidation in the business community as traditional energy assets are turned off, with no renewables arriving to replace them," Business Hunter acting chief executive Sheena Martin said.
However groups lobbying for its closure warned the state would fail to meet already weak climate targets if the decision to subsidise Australia's biggest coal plant goes ahead.
"This recommendation is an absolute disaster for the climate, energy affordability and the credibility of the NSW government when it comes to emissions reductions," NSW Nature Conservation Policy and Advocacy director Brad Smith said.
