Why Can’t Eraring Just Close? A Simple Explainer

There’s been a lot of discussion about Eraring’s closure, and it can sound political, but the real issue underneath is mostly engineering. Here’s the straightforward version for anyone trying to understand what’s going on. 

1. We Have Enough Electricity — That’s Not the Problem 

NSW can replace Eraring’s actual energy with a mix of: 

• solar 

• wind 

• batteries 

• hydro 

• interstate supply 

So the risk isn’t that the lights will turn off because there’s not enough power. The risk is the grid becoming unstable without the big spinning turbines inside the coal plant. 

2. Coal Plants Don’t Just Make Power — They Stabilise the Grid 

Eraring’s giant turbines spin 24/7. That spinning mass gives the grid: 

• inertia (slows down sudden changes) 

• system strength (keeps voltage steady) 

• frequency support (keeps the grid at 50Hz) 

Wind, solar, and most batteries don’t provide this naturally. So when coal plants shut, the grid loses its “shock absorbers”. 

3. What’s Needed? Synchronous Condensers (Syncons) 

These are big machines that spin like a turbine but don’t produce electricity. They give the grid the same stabilising effect coal plants used to provide — a sort of electrical heartbeat. Each syncon costs up to $150 million, weighs hundreds of tonnes, and takes years to manufacture and install. 

4. So Why the Delay? 

There are three main bottlenecks: 

a) Global supply chain backlog 
Many countries are closing coal plants, so everyone is ordering syncons, creating long manufacturing queues. 

b) Long construction and installation times 
They need major civil works, heavy cranes, grid protection systems, and months of testing. 

c) Transmission constraints 
Syncons only help if they’re connected to the right parts of the grid. Some sites aren’t ready yet. 

Even with fast-tracking, NSW’s machines won’t all be online until 2027 or later. 

5. What Happens If Eraring Closes Before the Stabilisers Are Ready? 

AEMO has warned it may need to: 

• run gas or coal generators more often 

• shed load (planned blackouts) in rare cases 

• turn off parts of the transmission system temporarily 

• intervene in the market up to 30% of the time 

This isn’t about energy supply — it’s about keeping the grid stable and safe. 

6. So What’s the Takeaway? 

The transition is happening, and the clean energy pipeline is huge, but the physical grid equipment hasn’t caught up yet. Eraring can close safely once the stability infrastructure is in place. Until then, shutting it too early would risk the grid wobbling, even if plenty of renewable energy is available. 

Confused? No worries — that’s what we’re here for. We monitor these events closely and can guide you on the best contract for your business needs.