Closure of Eraring Power Station in NSW Hunter region will affect electricity prices and jobs

Consumers and energy workers will cop the brunt when Australia’s biggest coal power plant shuts its doors in three years time, experts warn.

Electricity giant Origin Energy has announced the Eraring power station at Lake Macquarie, north of Sydney close in 2025 as part of plans to fast-track its exit from coal-fired generation.

NSW residents have been warned of the widespread ramifications of soaring power prices, more frequent power blackouts and the livelihoods of hundreds of energy sector workers in Hunter Region placed at risk. 

The impact on power prices remains unclear but energy bills in Victoria soared by 16 per cent when the state’s Hazelwood plant shut in 2017.

The Eraring power station (pictured) will close in mid-2025, seven years earlier than planned

Experts fear Eraring’s early closure will result in ‘third world-style’ programs to manage consumer electricity usage.

That could possibly include ‘smart’ metres’ turn customers’ airconditioning off on hot days to reduce demand on the network, according to Frontier Economics co-founder Danny Price

‘The system will absolutely be less reliable and power will be more expensive once Eraring closes,’ he told the Daily Telegraph.

‘We are a modern economy, not a third world country – we shouldn’t have to worry about whether we turn the power on or not.’

Up to 10,000 jobs in the Hunter electorate could be destroyed by a net zero emissions target, according to the Institute of Public Affairs.

The policy think tank’s research also revealed the Eraring closure would have no impact on global temperatures and slash global emissions by less than 0.04 of one per cent.

Closure of the Eraring power plant will result in soaring electricity prices and more power blackouts (stock photo)

‘IPA research has identified that close to 15 per cent of all jobs, around 10,000, in the electorate of Hunter could be destroyed by a net zero emissions target,’ research director Daniel Wild  told the publication.

‘Sadly with 400 jobs at stake at the plant plus thousands more potentially in the supply chain, the Eraring announcement by Origin confirms this research.’

Sky News commentator Peta Credlin has called on Prime Minister Scott Morrison to intervene.

‘If Scott Morrison wants to show he’s serious about keeping the lights on, he’d take steps to acquire the Eraring plant compulsorily (on just terms, of course) and keep it running until there’s an alternative source of baseload power,’ she wrote in her weekly column in The Australian.

Experts warn the livelihoods of hundreds of energy sector workers in NSW Hunter Region placed will be at risk (pictured, workers at the Liddell Power Station in Muswellbrook)

‘With the world entering the gravest security crisis in decades, the last thing we need is an indulgent frolic further weakening our power system.’

Eraring became fully operational in 1984 and is biggest of the 16 remaining coal-fired power plants supplying the national energy market.

The plant was originally due to be decommissioned in 2032.

Origin Energy boss Frank Calabria acknowledging the closure would be ‘challenging’ for hundreds of staff.

‘The reality is the economics of coal-fired power stations are being put under increasing, unsustainable pressure by cleaner and lower-cost generation, including solar, wind and batteries,’ he said.

Opened in 1984, the Eraing operation is Australia’s biggest coal power plant (pictured)