MELBOURNE, Feb 17 (Reuters) – Origin Energy (ORG.AX) said on Thursday it plans to close Australia’s largest coal-fired power plant in 2025, seven years earlier than originally planned, as an influx of wind and solar powers the plant Not economical to operate.
Origin’s announcement to pull out of coal-fired power comes after its rivals moved to speed up closures of their coal-fired plants, all of which are grappling with falling electricity prices, hurting plants that don’t have the flexibility to shut down in times of excess energy.read more
Frank Calabria, chief executive of Origin Energy, said in a statement: “The reality is that the economy of coal-fired power stations is under increasing, unsustainable pressure as clean and low-cost Power generation includes solar, wind and batteries.”
The company plans to install a large battery of up to 700 megawatts (MW) at its Eraring power station, about 120 kilometers (75 miles) north of Sydney, and it aims to have most of the 2,880-megawatt plant closed before it closes.
Meanwhile, the NSW government said on Thursday it would work with network operators to build a separate 700-megawatt battery to help unlock capacity in the state’s transmission system.
“Our concern is making sure we have enough fixed rated capacity in the system to be able to keep the lights on and lower the price of electricity,” State Treasurer Matthew Keane told reporters.
Calabria said Origin believes the announced plans for new gas-fired power plants, pumped hydro and batteries “will be sufficient to make up for Eraring’s exit.”
Origin reported on Thursday that underlying profit rose 18 percent to A$268 million ($193 million) in the six months to December, helped by record income from its stake in the Australia Pacific LNG plant.
Strong LNG prices led it to raise its full-year EBITDA forecast by A$100 million to between A$1.95 billion and A$2.25 billion.
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Post time: Mar-04-2022
