Revealed: Qld’s looming power crisis if Gladstone plant shuts early

Energy experts warn Queensland and NSW could plunge into darkness unless 1000MW of power capacity is secured before Gladstone plant’s early closure.

Gladstone Power Station.

The earlier-than-expected closure of Australia’s oldest and largest coal-fired power plant could lead to summer blackouts in Queensland if all energy projects in the pipeline aren’t completed in time.

The potential shuttering of Gladstone Power Station in March 2029 – six years earlier than expected – will also impact NSW as the southern state leans on Queensland for its power needs.

Mining giant Rio Tinto is firm no final decision has been made to retire the 1680MW power station, which exists to power the Boyne Smelter with excess electricity sold into the grid.

The Australian Energy Market Operator, in an updated forecast, warned Queensland faced serious electricity “reliability risks” if all committed and anticipate projects weren’t completed.

The shortfall would hit the Sunshine State between December 1, 2029 and March 31, 2030 unless about 1000MW of additional firming capacity – which included energy sources like gas, pumped hydro or large-scale battery – was plugged into the system.

An early closure could also have an impact on NSW, with the update stating reliability risks would increase in the state from 2029-30.

Grattan Institute energy expert Tony Wood said that was because the power station had been selling “quite a bit” of electricity to the southern state.

“But if that power station is not there, then that’s a source of electricity that NSW won’t have any more,” he said.

Gladstone Regional Mayor Matt Burnett

AEMO executive general manager (system design) Nicola Falcon said a potential early retirement of Gladstone Power Station flagged the need for the timely delivery of planned longer-term investment.

“More broadly across the national electricity market, the delivery of new generation, storage and transmission, along with the operation of consumer energy resources to support reliability, remain critical with considerable power station retirements and increasing demand forecasts,” she said.

The AEMO update comes ahead of the Queensland government announcing its energy road map next Friday, which Gladstone Regional Mayor Matt Burnett hopes will include assurances about the future of the power station.

“We know it can’t possibly close in 2029, there just isn’t the renewable energy on the ground,” he said.

“The idea that there’s enough renewables in the market at the moment or would be by 2029 or even 2035 is just highly unlikely.

“The power station needs to remain open while the transition takes pace, in order to support existing industry.”

Mr Wood said the government needed to have an answer on the “serious questions” about whether the power Gladstone supplies can be sourced from elsewhere.

“I’d be very surprised if they don’t say, ‘look, we’ve got this under control, here’s what we’re going to do and it’s going to be fine’, which might mean having to be a little bit more renewables positive ... because they’re not going to announce a new coal-fired power station,” he said.

Originally published as Revealed: Qld’s looming power crisis if Gladstone plant shuts early