The energy company also signed a coal supply agreement with Centennial Coal for 24.5 million tonnes of coal over an eight-year period using the Eraring power station, starting in 2015.

Origin Energy energy markets chief Frank Calabria said the Eraring arrangement would provide a reliable and affordable supply of energy.

“Origin and Eraring Energy have worked closely together during the past month to achieve a seamless transition to the new ownership arrangements,” he said.

Earlier this year New South Wales Treasurer Mike Baird announced he was terminating the government’s obligations to develop and operate the Cobbora coal mine.

At the time the treasurer said the mine would have cost more than $1.5 billion to develop.