Queensland’s governing LNP will scrap the previous Labor government’s emission reduction targets under its new energy roadmap and continue to operate some of the state’s coal-fired power stations until at least 2046.
The by definition ideologically-driven political party described the previous energy plan as “ideological”, and characterised its own plan to prolong the exit from coal while investing in more gas as “flexible”.
Queensland has the highest emissions of any state in Australia, responsible for more than a quarter (28 per cent) of total greenhouse gas emissions.
Of its emissions, about a third is due to electricity generation, which is mostly coal (65 per cent), solar (20 per cent) and wind (6 per cent).
Five of the state’s eight coal-fired power plants are government-owned, with two private and one part-owned in a joint venture.
The state has eight coal-fired power stations: two are privately owned, five are government-owned, and one is part-owned through a joint venture.
Introducing the roadmap, Queensland Treasurer and Minister for Energy David Janetzki stated that a sensible transition means affordable, reliable, and sustainable energy for all Queenslanders.
He added: “[The roadmap] charts a pragmatic path to meet Queensland’s energy needs over the next five years and beyond – founded on economics and engineering, not ideology, and grounded in the realities of consumer needs, infrastructure costs, and deliverability timeframes.”
The roadmap claims that running the state’s coal assets for their whole technical life would save about $26 billion by 2035, representing annual savings of $1,035 per household, compared to the now-dumped accelerated closure schedule.
However, according to Smart Energy Council Chief Executive John Grimes, the roadmap’s revision of Queensland’s energy policy was detrimental to Queensland consumers and industry.
Grimes said: “This energy roadmap will increase Queensland consumers’ energy bills, and will damage the national capacity to respond to climate change for decades to come. “Aging coal-fired generation and expensive gas generation are unreliable and costly. “Queenslanders already know what the lowest-cost forms of energy are, with the highest uptake rates of solar PV in the world.”
Modelling commissioned by the Clean Energy Council showed that delaying the expected rollout of renewables and continued reliance on coal and gas nationally would increase power bills by $449 a year for households, and $877 for small businesses this decade.
This would represent a minimum for Queensland, with the state government also allocating $1.6 billion to maintain the existing coal power stations. Despite being younger than other coal plants in Australia, Queensland’s facilities similarly require replacement as they age and become increasingly unreliable.
About two-thirds of Queensland’s coal-fired power capacity is at least 30 years old, and nearly half (47 per cent) of coal capacity can be expected to close in the next six years, based on the average closure age (42 years) of previous Australian coal-fired power stations.
On the other hand, modelling undertaken during the previous government indicated that achieving a 70 per cent renewable power target by 2032 could create 64,000 jobs and unlock $25.7 billion in economic growth, and still reduce power prices.
Stephanie Bashir, Chief Executive at Nexa Advisory, said: “The Queensland government has delivered a cul-de-sac, not a roadmap – Queenslanders are being saddled with the most expensive energy option. “Extending coal, which is already unreliable and expensive, means more outages, higher bills and less investment in cheap renewable alternatives, like wind and solar backed by batteries.”
As part of the roadmap, a $400 million Queensland Energy Investment Fund will be established, managed by the Queensland Investment Corporation (QIC), to attract investors for energy projects. Janetzki said: “[The] fund will be an open door to all renewable investment proponents, bringing Queensland energy supply and firming projects from origination to operations, and inviting collaboration with the private sector and governmentowned corporations.”
The LNP government has also blocked two previouslyapproved wind farms that could have powered up to 750,000 homes – the Forest and Moonlight Range wind farms – citing community opposition, as well as cancelling the Pioneer- Burdekin pumped hydro project.
The Climate Council stated that data from across Australia indicated that increased renewable power in the grid exerted downward pressure on power prices. It explained: “In Queensland, wholesale prices dropped 40 per cent in 2023-24, with increased solar and wind energy in the grid playing a key role.
“Increasing solar and wind generation, backed up with storage like batteries, can keep power prices in check, improve the reliability of our power system, and keep Queenslanders safer from worsening climate change. “Households, businesses, investors and governments all around the world are embracing renewable energy because it’s affordable, clean and can be rolled out fast – the Queensland government should do the same.”
A strand of continuity in the roadmap is the government’s commitment to delivering the Copperstring project in northern Queensland. Janetzki said work on the “eastern link” of the project – from Charters Towers to Hughenden – would be prioritised and expected to be complete by 2032, subject to federal approvals.
Copperstring involves the laying of 1,100 kilometres of power lines from Townsville to Mount Isa, connecting remote towns and mines to the national electricity market for the first time. In April, the government announced it would seek private investment for a section of the project, following a cost increase to $13.9 billion.
This figure is disputed by the government-owned corporation Powerlink, which estimated the cost at $9 billion last year.
