Major energy company sparks backlash with sudden change in plans: 'Certainly not straightforward'

Australia's largest energy retailer has signaled it still intends to shutter a coal-fired plant. Its timeline, however, has shifted amid concerns of system security.

Origin Energy CEO Frank Calabria told Renew Economy's Energy Insiders podcast that the energy company could officially close Eraring in August 2027, yet he dampened expectations, saying there are "lots of scenarios out there." 

"There's just a lot going on coming into the system, and getting the exact timing of that from a reliability and security point of view is certainly not straightforward," Calabria said.

Origin planned to halt operations at Eraring this past August. But it agreed to a two-year extension with the New South Wales government in May 2024.

"To keep the lights on and prices down, we need to make sure new renewable infrastructure and storage capacity is online before coal-fired generators reach the end of their life," the NSW government said in a press release at the time. "...This is a proactive and sensible step to ensure a plan is in place, if needed, to avoid electricity outages and rising power prices."

Ultimately, Origin could close Eraring in stages, leaving it at least partially operational until April 2029. Calabria's interview with Energy Insiders came just before AEMO, Australia's energy market operator, released its 2025 Transition Plan for System Security.

In its report, AEMO identified weaknesses in grid capacity in every region except South Australia, where "renewables regularly peak at over 100% of demand." 

As it stands, the country generates more than one-quarter of its energy from coal, according to the International Energy Agency. 

That represents a 31% downward trend from 2000 to 2024. This fact demonstrates that Australia is making progress toward its goal of reducing harmful planet-warming pollution from fossil fuels. 

As for coal, it is the world's dirtiest and deadliest energy source. 

How concerned are you about the plastic waste in our oceans? Extremely 😫 I'm pretty concerned 😥 A little 😟 Not much 😕 Click your choice to see results and speak your mind.

Critics say Origin could do more to support an energy transition. As Renew Economy pointed out, Origin was slow to invest in solar and wind when it first announced Eraring's closure in 2022. Calabria said a failed takeover bid led by Brookfield slowed Origin's momentum.

"Now, there were definitely things that probably through the takeover bid meant that we weren't making big bets on large acquisitions at that point in time," he told Renew Economy.

Today, Origin is involved with Australia's largest wind project. It has also spent heavily on large-scale battery storage. Batteries can ensure solar and wind energy are available for use when conditions aren't favorable for electricity generation.

One project at the Eraring site is expected to deliver enough energy to power over 150,000 NSW households each year.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.