Electricity

• A serious incident at Queensland’s Callide C3 coal-fired generator (described as an “explosion”) has forced the unit offline until at least the end of May. Scheduled maintenance outages are planned for the remaining units in May and June. CS Energy maintains there is sufficient generation to meet demand for the June quarter and said outage schedules can be adjusted if needed. (The Australian)
• The Callide B power station will now stay open up to three years longer than its original 2028 closure date. Extensions to other QLD state-owned coal generators will be detailed by the end of 2025, as part of the LNP’s new “energy roadmap.” The 2021 Callide explosion, which caused blackouts and price spikes, is cited as a reason for prioritising maintenance and reliability. (AFR)
• The closure of EnergyAustralia’s Yallourn coal plant in 2028 (1.48 GW capacity, ~20% of Victoria’s electricity) increases pressure to deliver replacement capacity. (AFR)
• Timeframes for grid connections are stretching to up to 36 months as well as cost blowouts, and some unregulated connection requests are being rejected due to capacity constraints. Contractors and grid developers are concerned that the trade war and resulting global supply chain pressure may delay or further increase project costs. (AFR)
• The Coalition claims electricity bills would fall by 3% under its proposed gas policy, which includes diverting uncontracted LNG exports to the domestic market. (The Australian)

Gas

• The Coalition’s policy would require east coast LNG exporters to reserve more gas for domestic use by applying a de facto levy (a “security charge”) to make local sales more attractive than exports. The gas industry and analysts argue the policy is flawed and could reduce long-term supply and investment. AEMO warns the east coast gas market faces structural supply deficits as early as 2029 due to depleting traditional sources. (The Australian)

Renewables

• Treasurer Janetzki announced that Queensland would abandon legislated renewable energy targets and may amend the 2035 emissions reduction goal (75% cut from 2005 levels). (The Australian)
• Queensland argues its coal fleet is younger and cleaner than other states’, pointing to the Kogan Creek plant (opened 2007) as an example. This policy shift follows similar moves in NSW, where the Eraring coal station is being kept open until 2027 with state subsidies. (AFR)
• The trade war, particularly the US tariffs on Chinese goods, could disrupt global supply chains and raise costs for grid and renewable energy projects in Australia. Energy-intensive manufacturers like Brickworks and BlueScope remain concerned about rising power prices linked to the cost of building out the transmission grid. (AFR)