Energy crisis: Qld dodges another blackout, state’s coal to keep lights on

Queensland came close to another blackout warning on Monday, and its coal-fired power stations will have a key role in the transition to renewables.

Lower prices, more renewables and better reliability need to be part of the proposed scheme to prevent another energy crisis, state Energy Minister Mick de Brenni says, while Queensland’s young fleet of coal-fired generators will be key to keeping the lights on for the nation during the net-zero transition.

Meanwhile, Prime Minister Anthony Albanese has pledged “we will do better”, while his Energy Minister Chris Bowen said the fact that blackouts were avoided recently meant the system was working.

Climate Change and Energy Minister Chris Bowen

While the Federal Government said the worst of the energy crisis had passed, Queensland’s electricity system remained under pressure, stopping just short of new blackout warnings before more capacity was found on Monday.

The Energy Security Board released a draft plan on Monday for a “capacity mechanism” that would pay generators to ensure power reliability, stressing that coal and gas would need to be part of the interim solution during the transition to net zero.

Queensland has the nation’s youngest fleet of coal-fired power stations, with just one scheduled to close before 2030 and Millmerran planned to run until 2051.

Grattan Institute energy and climate director Tony Wood said it was fair to say that Queensland’s coal power stations would continue to export power to the southern states during the energy transition, though it would become more of a two-way exchange as more renewables came online in the Sunshine State.

“It’s a possibility that the younger, more reliable plants in Queensland might be around longer, recognising that it was one of the newer plants in Queensland that blew up recently,” Mr Wood said.

“Queensland often has more generation capacity... it was a regular exporter of power south. As Queensland itself starts to move towards more renewables there will be times Queensland imports from other states.”

Mr Bowen confirmed that different states would be responsible for choosing whether or not coal and gas power would be included within their capacity mechanism, as proposed by the ESB.

“The grids in different states of development. Queensland’s coal-fired power stations are younger than Victoria’s for example,” he said.

Queensland Energy Minister Mick de Brenni

Mr de Brenni said he would consider the draft plan, but any final proposal needed to back renewables.

“Any final proposal must support the development of new renewable generation, pumped hydro and battery storage, and ultimately deliver lower prices and better reliability for Queenslanders,” he said.

Opposition energy spokesman Ted O’Brien said the ESB recommending coal and gas being kept in the energy mix exposed “the nonsensical approach” of the Labor Government.

“If Queensland has a disproportionate supply of coal and gas, who is paying the bill to prop up other states like Victoria,” he said.