Queensland scraps coal plant closure plan, sets out new energy roadmap
Queensland has officially scrapped the former administration’s plan to close the state’s coal-fired power stations by 2035, unveiling on Friday a new Energy Roadmap that it says prioritises affordability, reliability and long-term energy security.
The roadmap replaces Labor’s Energy and Jobs Plan, which the government described as “ideological” and “undeliverable", with a more flexible approach that extends the life of Queensland’s youngest-in-the-country coal fleet while driving private sector investment in renewables, gas and firming capacity.
Treasurer and Minister for Energy David Janetzki said the roadmap was “based on economics and engineering, not ideology", and provided certainty for the future of coal and gas in the state. “Labor’s plan to close coal units by 2035, regardless of their condition, is officially abolished,” he said. “Queensland’s coal-fired fleet will continue to operate for as long as they are needed in the system and supported by the market.”
The government expects the plan to deliver A$26-billion in energy system cost savings to 2035, preventing households from paying an additional A$1 035 a year on average compared with the former plan.
Key initiatives include a A$400-million Queensland Energy Investment Fund to attract private capital into new generation and firming projects, a A$1.6-billion Electricity Maintenance Guarantee to upgrade existing assets, a tender for 400 MW of new gas-fired generation in Central Queensland, and the consolidation of pumped hydro development under the Queensland Investment Corporation. The roadmap also commits A$10-million for community-level batteries and advances the CopperString transmission project, with construction of both its Eastern and Western links to connect North and North West Queensland.
Queensland Resources Council (QRC) CEO Janette Hewson welcomed the roadmap, saying it recognised the “central and critical role coal and gas will play in the state’s shared energy future".
“Queensland needs a diverse energy mix that balances affordable, reliable and sustainable energy supply for all users,” Hewson said. She added that the roadmap “establishes a practical path to energy security by ensuring renewables and storage projects are providing the energy that Queensland needs before traditional coal-fired stations are shut down.”
“Extending coal fired power stations will allow more time for replacement capacity to come online and ensure a powerful mix of supply,” she said.
Hewson also warned of the need to address looming gas shortages. “Gas shortfalls are forecast in the coming decades and if we are to meet the firming needs of the National Electricity Market then new projects or expansions are needed now,” she said. “The roadmap provides a level of certainty for investors that Queensland supports coal and gas and exploration.”
While supportive of the roadmap’s direction, the QRC urged the government to improve the pace of project approvals, noting that “Queensland’s resources can take up to 16 years to get out of the ground due to duplication and excessive regulation". Hewson said such delays could see the state “miss its opportunity in the energy transition to produce more gas and thermal coal for generation and steelmaking coal for wind turbines or minerals for solar panels if projects do not come on line sooner.”
Hewson also welcomed the government’s commitment to the CopperString transmission line, which could unlock A$500-billion in critical mineral reserves in the state’s north-west. “CopperString’s Western Link from Hughenden to Mt Isa is essential for exploration and production of the critical minerals needed for the energy transition,” she said.
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