SYDNEY听–听础耻蝉迟谤补濒颈补听is听肠辞苍蝉颈诲别谤ing听别虫迟别苍诲颈苍驳听the听濒颈蹿别听of Origin Energy’s聽Eraring听肠辞补濒听fired听辫辞飞别谤听plant, the country’s听濒补谤驳别蝉迟, the New South Wales (NSW) state minister for climate change said on Tuesday.
Origin said last year it would聽聽in 2025, in part because falling听辫辞飞别谤听prices had made it difficult to turn a profit.
But surging听辫辞飞别谤听prices and a growing worry that renewable energy is聽聽to offset retiring fossil fuel听辫濒补苍迟s have combined to revive the case for delaying the Eraring’s closure.
New South Wales Minister for Climate Change Penelope Sharpe said a government-commissioned report had made the case for听别虫迟别苍诲颈苍驳听Eraring’s听濒颈蹿别听and the government would speak with Origin about the听辫濒补苍迟‘s future.
“The checkup makes it clear that the case for Origin Energy to extend its timeframe for phasing out Eraring is there,” Sharpe said at a news conference.
“We accept the recommendations … We will engage with Origin about the future.”
Eraring was a “profitable asset” and Origin had a strong commercial interest to defer its closure, the NSW government said in its response to the report.
Origin shares traded ex-dividend on Tuesday and fell 2.8% in morning trade. The company in March agreed to a A$15.35 billion ($9.86 billion)聽 from a consortium led by Canada’s Brookfield聽that is expected to close in early 2024.
Brookfield declined to comment.
In a statement, Origin acknowledged the recommendations and said it would work with the state government “to find a path forward that can help navigate the economic challenges facing the听辫濒补苍迟聽and avert any risk to the reliability of electricity supply in the state.”
The report, commissioned in May, also recommended government improve the grid to allow more low-emissions generation and听肠辞苍蝉颈诲别谤聽investing in more gas storage to support the seven gas听辫濒补苍迟s expected in the state by 2024.
NSW accepted in part or full 47 of the report’s 54 recommendations, according to Sharpe. Three were already underway and four were rejected. – Reuters
