A new report by the Clean Energy Finance organisation is casting doubt on the likelihood of power shortages if the Eraring Power Station at Lake Macquarie closes.

The organisation says the state can avoid forking out hundreds of millions of dollars to keep the power station open beyond the middle of next year because there’s been a surge in clean energy projects in the past six months.

It says the new battery and clean energy capacity created during this time is more than enough to offset the more than 2,800 megawatts of power generated by Eraring. 

It comes as discussions are continuing with owner, Origin Energy about keeping the power station open beyond 2025.

The Eraring Power Station is due to close in 2025