Extending the operation of Australia's largest coal-fired power station could result in annual damages of $1.7 billion, a new report claims. 

The assessment raises concerns as New South Wales considers extending the Eraring power station’s lifespan beyond its 2025 closure date, in order to address energy transition challenges and avoid potential blackouts.

The analysis also suggests that Loy Yang A could incur approximately $2.9 billion in annual damages if kept operational, while Loy Yang B's damage cost would be close to $1.7 billion.

The report says implementing a price on carbon emissions could significantly alter Australia's economic landscape and accelerate progress toward achieving net-zero emissions.

More details are accessible here.