LETS MAKE QUEENSLAND A ECONOMIC POWERHOUSE NOT WITH RENEWABLES ON FINANCIAL LIFE SUPPORT WITH FLICKERING LIGHTS Graham Healy
- Graham Healy
- Jul 30
- 4 min read
Updated: Jul 31
LETS MAKE QUEENSLAND A ECONOMIC POWERHOUSE NOT WITH RENEWABLES ON FINANCIAL LIFE SUPPORT WITH FLICKERING LIGHTS Graham Healy Thur 30/ 7/26 **Queensland Plan: Become Australia’s largest electricity generator while cutting commercial and domestic power costs by maximising its coal fleet advantage**
Queensland already has the largest number of coal-fired power stations of any state (around 8 major stations with ~8 GW capacity) and the highest coal share of generation (~56.5% in 2025). It is frequently a net exporter to the rest of the NEM. The plan below focuses on turning this into a sustained lead in total generation (MWh) while driving down wholesale and retail costs for households and businesses.
### Core principles
- Treat existing coal as low-cost, dispatchable baseload (domestic coal supply is a major advantage).
- Keep Queensland connected to the NEM so surplus power can be exported (this earns revenue and helps keep average costs down).
- Prioritise high availability and efficiency of current assets over expensive new builds or premature closures.
- Target wholesale cost reductions that flow through to retail bills (generation is ~30–40% of a typical bill; network and retail make up the rest).
### 1. Maximise output from the existing coal fleet (Years 1–5 priority)
Queensland’s coal stations (Gladstone, Stanwell, Tarong, Tarong North, Callide B/C, Millmerran, Kogan Creek and others) form the backbone.
**Actions:**
- Full implementation of a state “Electricity Maintenance Guarantee” with dedicated funding for major overhauls (boilers, turbines, generators, control systems).
- Life-extension programs for units with remaining technical life (especially newer supercritical units such as Kogan Creek and Millmerran).
- Raise average availability from current levels (often 70–80%) toward 85%+ through predictive maintenance and reduced forced outages.
- Secure long-term, competitive domestic coal supply contracts from Queensland mines to lock in low fuel costs.
**Expected impact:** Higher annual generation volume, more reliable baseload, and downward pressure on wholesale prices. This is the fastest way to increase total state generation without multi-year construction delays.
### 2. Optimise the system for maximum net generation and exports
- Maintain and upgrade the Queensland–NSW Interconnector (QNI) capacity so Queensland can export surplus coal and solar power when prices are high in southern states.
- Operate coal units more flexibly where technically possible (minimum stable load reductions) so they can stay online and respond to market signals.
- Use existing and new battery storage primarily for firming peaks and soaking up excess daytime solar, rather than as a full replacement for coal.
This keeps Queensland generating more total energy than NSW, Victoria or any other state by combining high coal utilisation with growing solar output and export sales.
### 3. Cost-reduction measures for commercial and domestic users
**Wholesale side**
- Reliable, high-volume coal generation keeps the marginal price lower for longer periods.
- Export revenue from the NEM helps offset system costs.
- Avoid isolation from the NEM — interconnection provides diversity and competition that lowers average costs.
**Retail and network side**
- Stronger retail competition and simpler comparison tools so more customers move off expensive standing offers onto market plans.
- Targeted network efficiency upgrades (especially in growth areas) to slow the rise in poles-and-wires charges, which form a large part of bills.
- Pass through wholesale savings via the Default Market Offer (DMO) and notified prices for regional customers.
- Minimise additional environmental scheme costs or layering of new subsidies that raise bills without clear system benefits.
**Commercial focus**
- Special large-user tariffs or contracts that reward flexible demand (e.g., industry shifting load to high-solar periods).
- Support for energy-intensive industries (aluminium, mining, data centres) with competitive long-term contracts backed by Queensland coal and solar.
### 4. Targeted supporting capacity (only where it lowers overall cost)
- Modest additions of open-cycle gas or batteries for peak support and system security, located near existing coal sites where possible (to reuse transmission).
- No large-scale forced renewable build mandates that raise system costs; allow private investment only where it is commercially competitive.
- Explore converting retiring coal units (when they eventually close) into synchronous condensers for grid strength rather than full demolition.
### 5. Timeline and measurable targets (5–10 years)
| Timeframe | Generation goal | Cost goal | Key actions |
|-----------|-----------------|-----------|-------------|
| Years 1–3 | Raise coal availability and total state output above other states | Stabilise then reduce wholesale prices | Major coal overhauls, secure coal supply, interconnector optimisation |
| Years 4–7 | Sustain lead in total MWh generated; grow exports | Noticeable retail bill reductions (target mid-single digit % real terms where possible) | Complete life extensions, retail competition measures, network efficiency |
| Years 8–10 | Maintain generation leadership with high coal utilisation | Further cost discipline as older units are managed | Selective firming capacity, continued export focus |
### Realistic expectations
- Queensland can realistically generate more electricity than any other state by maximising its existing coal fleet plus solar, while remaining a net exporter.
- Significant bill reductions are possible if wholesale prices stay low through high coal availability and if network/retail costs are tightly managed. However, network charges and inflation will still exert upward pressure, so “significant” drops require disciplined cost control across the whole supply chain.
- Aging coal plants will eventually need replacement or major capital; the plan delays high-cost replacement by extracting maximum value from current assets first.
- Keeping the NEM connection is essential — isolation would raise costs by requiring higher local reserves and losing export revenue.
This approach leverages Queensland’s unique advantage (largest coal fleet + domestic fuel) to deliver both higher generation volumes and lower costs for households and businesses, without relying on speculative large new projects that take a decade to deliver.
