Origin shares dropped 0.6 per cent on Tuesday to $8.38,but this reflected the stock trading ex-dividend following its recent annual results.
“We acknowledge the recommendations regarding Eraring’s closure,and as we have consistently said,we will continue to engage with the NSW government to find a path forward that can help navigate the economic challenges facing the plant and avert any risk to the reliability of electricity supply in the state,” an Origin spokeswoman said after the announcement.
“The Eraring closure notice provided an important signal to the market about progress towards our nation’s climate goals,and Origin does not shy away from the need to exit coal generation as soon as there are sufficient renewables,firming and transmission capacity available.”
The news was no shock to analysts who had been expecting talks on an extension to the power plant’s life as fears grew that the energy market may not be able to meet demand if Eraring closed in 2025.
“It doesn’t come as any surprise,” Morningstar energy analyst Adrian Atkins,said.