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Coalkeeper, Queensland style: LNP commits $1.4 bn, sets utility KPIs, to keep coal generators on line

A day after NSW struggled through a potential grid crisis caused largely by the absence of one third of its ageing coal generation fleet, the new Queensland LNP government has announced that it has committed $1.4 billion to keep its coal generators on line, and in good working order.

Queensland is already the state most dependent on coal generation, with a 66 per cent share of demand in the last 12 months, and the LNP has already made clear that it wants to keep its state owned coal fleet operating for as long as possible, even though it insists it will – at least for now – resist the federal LNP overtures to push for nuclear.

On Thursday, as the Climate Change Authority outlined the importance of a faster transition to renewables, new premier David Crisafulli and treasurer and energy minister David Janetzki announced a $1.4 billion, five year “energy maintenance guarantee” to boost energy reliability – essentially propping up the ageing coal generators.

The LNP cited the explosion at the Callide coal plant during the watch of the previous Labor government as justification, and said executives of the government-owned power companies – CS Energy, Stanwell and CleanCo – will lose bonuses if they fail to comply with tough key performance indicators (KPIs) on maintenance and plant performance. 

“We’re being clear to power executives: no KPI delivery, no bonus,” Janetzki said in a statement.

“Inadequate maintenance was a key concern for years leading up to the Callide Catastrophe and the resulting power-price hikes cost Queenslanders every time they switched the lights on.  

“Our Electricity Maintenance Guarantee will ensure Queensland’s energy assets are never left in a state of neglect again.”

There was no mention about renewable targets in the statement. Labor had set a 50 per cent renewable target for 2030, rising to 80 per cent by 2035, and the LNP says it does not support them. However, renewable projects already in train, and the uptake of rooftop PV, should take the state to 50 per cent with little problem.

The longer term outlook is less clear, and the LNP has underlined its aversion to new wind projects, despite a significant number of gigawatt scale projects in the pipeline, including along the proposed Copperstring link to Mt Isa, that will also unlock major mining provinces.

The Queensland Conservation Council was scathing in its response.

“The Queensland Government can throw all the money they want at the state’s ageing coal-fired power stations but it doesn’t change the fact that we will continue to have breakdowns and struggle to compete against renewable energy,” campaigner and energy expert Stephanie Gray said in a statement. 

“Right now in NSW they’re seeing unplanned coal outages putting the grid at risk of blackouts because Australia’s ageing coal clunkers are reaching the end of their technical lives, they’re inflexible and they struggle in the heat. 

“In Queensland our renewable energy targets and clear policy signals have meant to date the state is an attractive place for clean energy investors, which is why we have a strong pipeline of projects and are on track to meet the targets. 

“Our research shows that if the Queensland LNP wants to keep retiring Callide B open past its used-by-date, it could cost Queensland taxpayers up to $420 million a year. This is a complete waste of taxpayer money when there’s more than enough renewable energy in the pipeline to replace Callide B by 2028.  

“If the new Queensland Government is serious about long-term reliability, affordability and sustainability, then they should maintain our renewable energy targets and urgently deliver a plan to reach them.”