Coal Australia has backed Origin Energy Ltd (ASX:ORG)’s decision to extend the operating life of the Eraring coal-fired power station to 2029, arguing the move supports energy security as the National Electricity Market transitions.
The extension has also drawn a response from the Clean Energy Council, which said it underlines the need to accelerate investment in renewables, storage and transmission to reduce reliance on what it described as an ageing coal fleet.
Coal Australia: coal “pivotal” for affordability and security
Coal Australia chief executive Stuart Bocking said the Eraring decision reflected a growing reliance on coal to maintain system stability.
He pointed to OECD data indicating coal power generation in member countries rose 4.5% year-on-year to October 2025.
“Coal is pivotal to energy affordability and security in Australia, and will be for decades to come,” Bocking said.
He added the extension “reinforces” warnings from the Australian Energy Market Operator (AEMO) that coal will be needed to stabilise the grid until at least 2049.
“It has been an economic folly to undervalue the contribution of coal to the future of Australia,” Bocking said, arguing policies aimed at closing or curtailing coal generation had “compromised household budgets” and “compromised energy security”.
Clean Energy Council: extension shows transition must speed up
Clean Energy Council chief executive Jackie Trad said the Eraring extension highlighted the urgency of speeding up investment in renewable generation and firming capacity.
“The average age of coal-fired generators in the National Electricity Market is now 38 years, with the historical retirement age just 44 years, placing much of the fleet firmly in the high-risk phase of its operating life,” Trad said.
She said while an orderly transition was important for system security, ageing coal assets were increasingly “unreliable and expensive”, with price volatility flowing through to consumers.
The council also pointed to unplanned outages as a driver of recent wholesale price spikes, saying large coal units averaging about 1,500 MW going offline without warning had contributed to volatility. It said wholesale electricity prices rose from about $70/MWh in October to $220/MWh in NSW during that period.