Fears early plant shutdown will wreak havoc on grid

 Origin has left the market stunned as they announce the 2025 shutdown of the Eraring power plant, 7 years earlier then previously planned. 

Located in Newcastle with a capacity nearing  3,000MW, Eraring is the single largest power station on the Australian grid. Experts are heralding an uncertain future for coal-powered energy, with this shutdown just the beginning. Federal Energy Minister Angus Taylor has warned that the fast approaching shutdown could cause electricity prices to spike.  

To ease consumer fears, Origin has planned to build a 700MW battery on site. It is predicted this will only partly offset the closure. As a part of the management plan the New South Wales government has pledged to build a second 700MW battery in the Hunter Valley.

Whilst fears for grid stability and the affordability of coal-powered energy are  justifiable, perhaps of greater importance is the reasoning behind the early shutdown. 

CEO of Origin, Frank Calabria has aligned the rise of renewable  energy with the uncertainty within the National Electricity Market. 

The economics and ethics of coal-fired power stations are under increasing scrutiny. This is due to the rise in cleaner and more cost efficient power such as: solar, wind and batteries.

The majority of power stations such as Eraring were designed with the intension to run around the clock. These plants are increasingly being forced to reduce output or switch off entirely due to the boom of renewable energy. 

Given that Australia has the highest Solar uptake globally, with over 30% of Australians having solar installed, how long will it be until the next early closure is announced?