The NSW Government will decide in October whether or not to intervene to keep Eraring Power Station open past its scheduled August 2025 closure date.
As of February this year, the Australian Energy Market Operator (AEMO), estimated the scheduled closure would leave a gap of between 262 megawatts and 450 megawatts in firming capacity in the summer of 2025-26.
Since then several new projects including Origin Energy's $600 million, 460 megawatt battery have been confirmed. A number of other major firming projects, such as AGL's proposed 500 megawatt grid-scale battery at Tomago are also likely to proceed.
A NSW government tender for 380 megawatts of firming capacity will also assist to narrow the capacity gap.
The state government is pushing to introduce more renewable energy generation and storage projects into the network to offset potential shortfalls before the scheduled retirement of four out of five NSW coal-fired power stations over the coming decade.
The 2922 megawatt Eraring Power Station presently produces up to 25 per cent of the state's energy needs.
Brookfield, which is poised to acquire the plant from Origin, has indicated that it would like to close the plant as soon as possible. However, it has given an assurance that it will not close until there is sufficient clean energy replacement capacity to compensate for its loss.
The NSW Government has already had preliminary discussions Brookfield about its plans.
Energy Minister Chris Bowen said on Wednesday that he was satisfied that the closure of Liddell Power Station on Friday would not result in a shortage of supply.
Earlier this month, Premier Chris Minns said while the closure of Liddell wouldn't impact energy generation in the state, the closure of Eraring could.
NSW Energy Minister Penny Sharpe said her primary concern was to keep the lights on and to ensure the energy transition proceeded as quickly as possible.
"None of us want the coal-fired power plant being open longer than it needs to be, but we've also got a responsibility to make sure that households and businesses can go about their business," she said.
