SYDNEY - The operator of Australia's largest coal-fired power plant on Tuesday announced that its planned closure will be delayed by two years to 2029.

Origin Energy said that it would extend the operation of the Eraring Power Station until April 30, 2029, to support electricity supply in the state of New South Wales (NSW) during the energy transition.

Origin had previously said that the 2,880-megawatt (MW) plant, which is located 95 km north of Sydney, would shut down in 2027.

However, the Australian Energy Market Operator (AEMO) warned in a report released in December that NSW would face an increased risk of blackouts if Eraring closed in 2027 due to delays to essential infrastructure projects to support the clean energy transition.

Frank Calabria, chief executive officer of Origin Energy, said that the decision to keep the plant operating would provide more time for renewables, storage and transmission projects to be delivered.

"Good progress is being made on the delivery of new energy infrastructure, including major transmission works and projects like our large-scale battery at Eraring, but it has become clear Eraring Power Station will need to run for longer to support secure and stable power supply," he said.

NSW's Environment Minister Penny Sharpe said that the decision would provide certainty to workers and energy consumers.

The NSW government has committed to reducing the state's greenhouse gas emissions by 50 percent from 2005 levels by 2030 and by 70 percent by 2035.