The State Government will reveal its intentions for the future of Eraring Power Station today.
It is expected to announce that the coal plant, which supplies about 20 per cent of the state's electricity, will stay open in some form beyond mid-2025.
It follows the government-commissioned O'Reilly Review into the progress of the state's clean energy transition.
The review recommended that the government strike a deal with Origin Energy to keep the 2880 megawatt plan running beyond the scheduled closure date to ensure the grid's stability.
Premier Chris Minns said during a visit to the Hunter last Friday that the government's decision would be 'fact-based' and designed to ensure the lights stay on and power prices remain as low as possible.
Delays and cost blow-outs related to the Central West-Orana and New England Renewable Energy Zones have been blamed for the need to keep coal-fired generators open longer than was hoped.
Speaking on Monday, Energy Minister Penny Sharpe dismissed reports that it would cost $3billion to keep Eraring open for two years. But she declined to offer an alternative figure regarding the cost of keeping it open beyond mid-2025.
Progress on several large battery projects, such as the Waratah Battery which is under construction the site of the former Munmorah Power Station, will be a key factor in determining how long Eraring needs to stay open.
The 850 megawatt battery is designed to act as a 'shock absorber' in the event of power surges caused by bushfires and lightning strikes.
The battery is on track to be completed in 2025, before the earliest possible closure of the Eraring Power Station in August 2025.
