Origin Energy slashes value of Australia’s biggest coal-fired plant due to impact of cheap renewables
Source: The Guardian
2nd August 2021
On Friday, Origin Energy shares fell after they announced lower than expected earnings and the write-down of its assets. It cut the value of its power stations by $583m, driven by the continued boom in renewable energy and dispatchable capacity coming onto the grid. Included in this was the Eraring power station, which is the biggest in Australia and supplies NSW with about 25% of its electricity.
This is a continuing trend with several coal power plants written down and expected closure dates brought forward. In December the value of Australia’s newest coal-fired power plant, Bluewaters, was written down to zero and in June the Queensland government warned that its state-owned plants would be unable to pay dividends within two years. Origin’s writedowns point to a tough year ahead for the company, which will reveal its 2021 financial results on 19 August.
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