As many as 3,700 jobs in future industries and renewable energy will be created in response to the proposed closure of Eraring power station, says NSW Treasurer and Energy Minister Matt Kean.
The state government is backing heavy industry and energy workers by investing in clean energy manufacturing to underwrite the state's prosperity for decades to come, he says.
Eraring, at Lake Macquarie in the coal-rich Hunter region, will be closed in August 2025 - up to seven years earlier than previously planned - and replaced with a large-scale battery.
Federal Energy Minister Angus Taylor says the decision is bitterly disappointing for everyone who relies on affordable, reliable energy to prosper, while unions claim hundreds of local workers were blindsided by Origin's announcement.
NSW Treasurer Matt Kean. Source: AAP
"We know some existing industries face challenges as the world decarbonises," Mr Kean said in a statement on Saturday.
"That's why we need to make sure the low carbon economy thrives in NSW to create the jobs of tomorrow.
But the replacement of ageing energy infrastructure in Australia and around the world will create a once in a generation investment boom.
Mr Kean says in NSW alone, there will be $32 billion worth of investment in energy infrastructure over the next decade.
To make sure it can be manufactured locally, he says the government will commit $250 million over five years.
"NSW also has some of the cheapest renewable energy in the world, which gives us a massive competitive advantage in producing clean fuels, chemicals and materials such as green steel, green ammonia and green hydrogen," Mr Kean said.
Investment Minister Stuart Ayres says the Renewable Manufacturing Fund will help secure supply chains and ensure business can access equipment it needs.
File: Australia's largest coal-fired power stations, the Eraring Power Station at Lake Macquarie, Sydney. Source: AAP
It's estimated 2700 direct construction jobs will be created, associated with the fast-tracked delivery of transmission infrastructure to connect new sources of generation.
Some 500 extra jobs will come from the effort to boost locally manufactured content for renewables like wind towers, electrolysers and batteries.
And 500 new jobs are expected from a $300 million investment over 10 years to expand a new low-carbon foundations element of the state's Net Zero Industry and Innovation Program.
Eraring, a 2880-megawatt black coal plant with four units, became fully operational in 1984.
It is the biggest of 16 remaining coal-fired power plants supplying the National Energy Market, with seven of those already scheduled to close by 2035 and the last planned to shut by 2051.
