“The early closure of Origin’s 2.88GW Eraring generator is a big deal that requires preparation and careful management to avoid reliability threats and cost increases,” Innes Willox, Chief Executive of the national employer association Ai Group, said today.
“Given the worsening economics of coal generation, the age of the fleet and the emissions commitments of governments and business alike, we are going to see more of these announcements. The Eraring decision follows hard on the heels of AGL’s milder acceleration of the planned closure of two other generators.
“Businesses and the community generally can take comfort from the fact that the market operator has a well-advanced plan for the electricity system to operate efficiently as these coal retirements accelerate, and the NSW and Commonwealth Governments have taken steps to secure investment in replacement generation and flexible resources.
“As an element in a larger transition, employees and businesses affected by the closure will need support to move into other activities.
“The debate about National Electricity Market capacity mechanisms should not be about setting in amber either the rules, or the existing generators. We need consensus across the Commonwealth, States and stakeholders on a market design and policy mix that we can all be confident will deliver the right investment as our electricity system rapidly evolves,” Mr Willox said.
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