The Hunter's peak business body says it is open to keeping Eraring Power Station open for longer if it means cheaper and more affordable power for consumers.
It follows a suggestion from Origin Energy chief Frank Calabria that Eraring may need to stay open beyond 2027 in order to meet a forecast increase in demand for baseload power.
The uptake of electric vehicles and the rise of data centres were among the sources of the forecast demand.
Mr Calabria told an investor briefing that volatile markets meant the 2880-megawatt coal generator could run "for as long as it is needed" and "at least" until August 2027, with that closure date to be reviewed in coming years.
"It would require us to be assessing the market, and also the government as well," he said.
Business Hunter Chief executive Bob Hawes welcomed the comments.
He said measures were needed to offset the risk of insufficient baseload power being available to support the region's energy-intensive industries.
"It is frustrating and at times alarming when we hear that there are long lists of proposed renewable projects only to learn that approval delays, supply chain challenges, community concern, investment uncertainty or the lack of grid infrastructure means projected build and commissioning dates are pushed back, well beyond optimum times to meet forecast system demand," Mr Hawes said.
Origin finalised a deal with the NSW government in May to keep the coal-fired generator open until 2027, by which time it is hoped enough clean energy infrastructure will be in place to support the grid.
Under the deal, Origin can be compensated up to $225 million a year if the plant runs at a loss, and will pay the government a portion of its operating profits, capped at $40 million, if it makes money.
Mr Hawes said delays to key clean energy projects meant energy prices would increase, putting some businesses at risk and also jeopardise efforts to reach net zero.
"We appreciate that both the state government through Minster Sharpe and the federal government through Minister Bowen are now more aware of the potential future shortcomings in the energy industry delivering large scale despatchable energy supply," Mr Hawes said.
"They both appear to be prepared to make provision for risk be it through extending the life of power stations or doing more with gas. It's not a situation any of us wanted to be in as we move towards a net zero economy but we must be pragmatic, transparent and realistic about the prospects of a gap appearing in supply across the energy transition process."
Unlike the former Liddell Power Station, Mr Hawes said it was essential that Eraring remained well maintained in order to provide the option of extending its life should it be needed.
