The Eraring Power Station in Lake Macquarie will remain open for an additional two years beyond its original 2025 closure date in a deal between Origin and the NSW state government.
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00:00The year was 1984 and then-Premier Neville Wran was opening a shiny new power station
00:07on the shores of Lake Araring.
00:10Now in 2024, the Labor Government's putting taxpayers' money on the line to prevent
00:15its planned closure next year.
00:17This ensures that the transition to renewables can be delivered without exposing the people
00:22of New South Wales to blackouts or to price spikes.
00:26Under the deal, if Origin Energy makes losses at Araring, New South Wales taxpayers will
00:31cover 80 per cent of them, capped at $225 million a year for two years.
00:37But if the operation manages to turn a profit, taxpayers will get 20 per cent of that, capped
00:42at $40 million a year.
00:44That is a good deal for the operator of the power station, but not a good deal for citizens
00:48of this state.
00:49Origin gets to decide each year whether it opts into the profit-sharing deal, but if
00:54it doesn't, taxpayers won't have to cover its losses.
00:57I think it's actually a very sensible and well-crafted arrangement.
01:02Origin will be required to generate power at roughly half Araring's total capacity and
01:07keep most of its 220 workers.
01:10It's provided another two years of security for our employees, so that's been very welcome
01:15for them.
01:16But it also puts more pressure on the planet.
01:19It's deeply disappointing, millions of tonnes of emissions going into the atmosphere for
01:24yet another two years.
01:26The Federal Coalition insists nuclear energy could help cut emissions and deliver a stable
01:31supply.
01:32You can't live in this mystical world where you just believe the lights turn on by chance
01:37each day.
01:38You need to have stability in the system.
01:39Peter Dutton keeps promising detail and substance and costings, but we haven't had anyone put
01:47their hand up and say they're prepared to finance it.
01:50The state government's still banking on renewables, but it's taking out insurance.
01:56Potentially paying a private company hundreds of millions of dollars to burn coal is politically
02:01risky for the Premier, but the government's decided the damage caused by potential blackouts
02:06or price spikes could be much greater.
02:09I don't think any sensible government would accept that you roll the dice and you just
02:14suggest that it'll be right, mate, because it's not going to be.
02:18And it could mean lights out for any government that gets that gamble wrong.