A hunger for coal in NSW is driving calls to keep Eraring open longer. 

In recent months, New South Wales has seen a significant rise in black coal power generation, increasing by about 6 per cent during the March quarter due to heightened summer demands

The stats come as Origin Energy and the Minns government contemplate the implications of possibly postponing the closure of Eraring Power Station.

“In a situation where we’ve got the reliance on coal generation actually not declining and actually increasing significantly, that would presumably make it more challenging to make the case to shut it early,” says Dylan McConnell, a senior researcher from the University of NSW.

The Australian Energy Market Operator (AEMO) has reissued warnings about potential power shortages, specifically highlighting the precarious state of the NSW grid, which may fail to meet the market’s reliability standard between April 2025 and April 2026. 

But some experts suggest that the observed surge in coal generation might be a temporary anomaly, influenced by one-off factors such as the closure of Liddell and the anticipation of heat-related grid pressures ahead of the El Nino summer. 

The situation could reverse in the second quarter, highlighting the inherent volatility of energy markets and the complex calculus involved in decisions about Eraring’s operational timeline.

The government and Origin Energy have been weighing the station's future against the backdrop of energy reliability concerns, environmental considerations, and financial ramifications for both NSW taxpayers and Origin.