NSW soon to decide on Eraring extension but former treasurer says it could cost billions

Matt Kean says previous Coalition government would have had to pay Origin Energy up to $3bn to keep half coal plant open for two years

• Follow our Australia news live blog for latest updates
• Get our morning and afternoon news emails, free app or daily news podcast

The Minns cabinet is expected to decide as soon as Monday whether it will spend potentially billions of dollars to keep Australia’s biggest coal-fired power station running for an extra two years to reduce the risk of blackouts.

The New South Wales government would have had to pay Origin Energy as much as $3bn to keep just half of its 2,880-megawatt Eraring plant near Newcastle open for two years, former energy minister and treasurer Matt Kean said on Monday.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup