Revealed: Major Qld power station’s shock closure timeline
Queensland’s largest coal-fired power station could close six years early, forcing the government to face its first major test of the state's renewable energy transition.
The early retirement of Queensland’s oldest and largest coal-fired power station is expected to be the first major test of the state’s ability to transition a critical industrial hub to renewable energy.
Mining giant Rio Tinto confirmed the Gladstone Power Station could close as early as March 2029, six years earlier than planned as it shifts to low emission power sources.
The timing is in line with the expiring of existing operational deals, including with the Boyne aluminium smelter — which is one of Queensland’s largest energy users.
The impending closure of Gladstone Power Station, which turns 50 next year, comes against the backdrop of state government that’s adamant coal will power the state for “many decades”.
MEANWHILE ON THE COAL ROYALTIES FRONT, THE GOVT HAS A SMART WAY OUT OF ITS MESS. READ TODAY’S EDITORIAL AND JOIN THE DISCUSSION
Treasurer and Energy Minister David Janetzki has signalled the state government won’t be purchasing the power station, and plans have been in train for some time to deal with Gladstone Power Station’s closure.
“The Crisafulli Government has been actively working with our government-owned corporations to prepare the network for the eventual closure of Gladstone Power Station,” he said.
Mr Janetzki is due to unveil the government’s energy road map on October 10.
Rio, which has a 42.125 per cent share of the joint venture ownership of Queensland’s largest coal-fired power plant, said the Australian Energy Market Operator had been formally notified of its potential retirement.
No final decision has been made to retire the 1680MW power station, which has operated since 1976, and there is potential to extend its life should market conditions and other factors allow.
Rio Tinto has also already moved to decouple the smelter from coal, striking a deal with Edify Energy to cover up to 90 per cent of its electricity needs by 2028.
That deal, together with an agreement signed in August 2024 under the former Miles government, will see the smelter receive state support from 2029 to remain competitive while it transitions to “firmed” renewables.
In return, Rio has pledged to keep the smelter running at full capacity until 2040, safeguarding 1000 jobs.
Grattan Institute Energy and Climate Change senior fellow Tony Wood said the move was promising with Rio seemingly “way ahead of the game”
Queensland has the youngest coal-fired fleet in the country, and aside from Gladstone Power Station the other seven facilities are state-owned and due to retire between 2031 and 2046.
VisIR chief executive Joseph O’Brien — instrumental in the Copperstring 2.0 transmission project--- warned Queensland had to use the closure window to strengthen transmission and industrial grade power supply.
“If Queensland wants to remain a global exporter of high-value minerals products we need an industrial-strength power system that strengthens our key centres of Gladstone and Townsville,” he said.
An AEMO report released in August found the country’s energy system was more reliable than last year after record renewables investment, but warned that could be compromised in the future by the accelerating decline and unplanned outages of the country’s coal-fired fleet.
Federal Energy Minister Chris Bowen said “we want coal fired power stations to stay open not a day longer than they should, but close not a day earlier than they are needed”.
“Governments have a job to make sure that when coal fired power stations close, Australians still have affordable, reliable energy,” he said.
“That’s exactly what we’re doing.”
$300m in grants, $25m debt: Billionaire’s solar empire crashes
