Coal comfort: Queensland’s power play

In a bold recalibration of the state’s energy strategy, the Queensland Government has unveiled plans to extend the operational life of its coal-fired power stations by another decade, signalling a pragmatic shift to balance energy security, affordability and environmental responsibility.  

At the heart of this new direction lies the Queensland Government’s $1.4b Electricity Maintenance Guarantee and a renewed focus on keeping the lights on for millions of Queenslanders – without letting go of long-term renewable goals.  

With more than 60% of the state’s electricity currently generated from coal, and the sector employing thousands across regional communities, the decision has far-reaching implications – not just for power production, but also for the political landscape, environmental commitments, and economic growth throughout the state.  

The move marks a strategic divergence from previous plans, which had slated the facilities Callide, Stanwell, Tarong and Kogan Creek for early retirement.  

Instead, Queensland is now planning extensive upgrades and refurbishment works to ensure these assets remain online – reliable, safe and efficient – for at least another decade – and it means a delay in the state’s transition to renewables.  

Queensland Treasurer and Minister for Energy David Janetzki has defended the decision, citing the dual need for more energy production and dispatchable backup while renewable infrastructure is scaled up.  

“In Queensland, our energy generation aspiration is pragmatically simple: more,” he said. 

“It’s no secret we must strive to ensure more low-cost energy production in wind and solar, plus more dispatchable supply including gas turbines, pumped hydro and batteries.???? 

“But at the same time, we need to meet the energy generation challenges of the future and to do so, we’ll need coal generation for longer.” 

With the state’s coal fleet also being the youngest in the country, Mr Janetzki believes Queensland holds a ‘competitive advantage’ and will continue to play a central role in the grid.  

The plan to maintain and modernise the infrastructure reflects that assessment, especially as demand for electricity continues to rise with population growth and industrial expansion.  

The maintenance guarantee

The cornerstone of the coal extension plan is the newly announced Electricity Maintenance Guarantee, a $1.4b commitment over several years, with more than $40m allocated for FY25 alone.  

The funds will be used to upgrade and maintain critical infrastructure at the Queensland Government-owned coal power stations. Among the works are Tarong Power Station, which will see the completion of its cooling tower refurbishment, and Callide B1 and B2 due for essential upgrades.  

“We want Queenslanders to know of the importance of our $1.4b Electricity Maintenance Guarantee for affordable, reliable and sustainable electricity,” Mr Janetzki said. 

“And in [FY25], our commitment will see more than $400m in investment into maintenance of our government-owned generators. 

“The technical and commercial life spans of our coal generators will be determined and they will remain open for as long as it is economically sensible and systemically needed.”?? 

The Queensland Government insists these investments are not a detour from renewable transition, but rather a safeguard to prevent price hikes and blackouts during what is anticipated to be a turbulent transitional phase.  

Mr Janetzki said they were ready to move forward.  

“We’re prepared to meet the challenges of the future and understand that in time marginal coal plants will face closure pressures,” he explained. 

“We’ll be ready for that and will ultimately replace them with lower cost options.? 

“But in the meantime, the Queensland Government’s Electricity Maintenance Guarantee will be crucial for the state’s energy generation, and I look forward to sharing with Queenslanders our five-year energy roadmap by the end of 2025.” 

Regional opportunities

The coal extension program opens the door to renewed and revitalised economic activity across Queensland’s regions, particularly in towns and districts surrounding the Callide, Stanwell, Tarong, and Kogan Creek power stations.  

These areas, long reliant on the energy sector for both direct employment and indirect support industries, are now poised to benefit from a new wave of investment tied to the state’s commitment to keeping coal in the mix. 

With large-scale refurbishment and upgrade projects on the way, the demand for skilled labour and specialised services is set to grow.  

Engineering firms, civil and structural contractors, fabrication workshops, and equipment suppliers stand to win significant contracts. So too will local businesses in transport, logistics, catering, accommodation, and equipment hire – all essential for the execution of maintenance works on assets of this scale. 

The ripple effects are expected to flow beyond the station gates. In towns like Biloela near Callide and Kingaroy near Tarong, families depend on stable, well-paying jobs at the power stations or in the mines that feed them.  

Sustained operation means not only job security, but also continuity for local schools, health services, sporting clubs and small businesses that thrive when major employers are active. 

Government sources estimate that thousands of jobs will be supported through both direct works and broader regional engagement. The assurance that these power stations will not be shuttered prematurely brings a measure of certainty for tradespeople and suppliers who might otherwise face economic downturns during an accelerated energy transition. 

Environmental management strategies

A suite of environmental management strategies to mitigate associated impacts are expected to be implemented, aiming to ensure that while energy reliability is maintained, environmental standards are not compromised.  

It would be expected that all coal extension projects be subject to rigorous environmental impact assessments (EIAs) as mandated by the Environmental Protection Act 1994, to evaluate potential impacts on air and water quality, biodiversity, and community health.  

The assessments would identify risks early and ensure appropriate mitigation measures are in place before any upgrades proceed, with processes to remain essential in guiding sustainable decision-making throughout the extension period.  

Transition with stability

As Queensland charts a path toward a more sustainable energy future, its decision to extend the life of coal-fired power stations represents a strategic shift rather than a step forward.  

The approach acknowledges the realities of energy demand, infrastructure readiness, and economic reliance in regional communities while maintaining a firm eye on long-term transition goals. 

By investing in maintenance and upgrades, the Queensland Government aims to keep power prices stable, avoid supply disruptions, and support the thousands of workers and businesses that underpin the energy economy. At the same time, environmental safeguards and forward-looking plans for clean energy hubs suggest this is not a permanent pivot, but a measured bridge to a more resilient and diversified grid. 

The five-year energy roadmap, due by the end of 2025, will be a critical next step – providing clarity on timelines, targets, and the integration of renewable energy sources, and the state’s decision indeed marks a turning point. One that balances today’s practical needs with tomorrow’s possibilities to ensure the state can move toward a cleaner, smarter energy future on its own terms.