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20 October 2025

The Great Queensland Energy Shuffle: Coal, Gas, And A Dash Of Renewables

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On 10 October 2025, the Queensland Government released the Queensland Energy Roadmap 2025 (the Roadmap), setting out a new direction for the State's energy future.
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On 10 October 2025, the Queensland Government released the Queensland Energy Roadmap 2025 (the Roadmap), setting out a new direction for the State's energy future. The Government also released the Advice on energy productivity and policy prepared by the Queensland Productivity Commission which informed elements of the Roadmap.

The Roadmap's stated core objectives are to ensure affordability, reliability and sustainability for Queensland's energy, while supporting economic growth and the transition to net zero by 2050. For private sector investors and developers across the energy spectrum, the Roadmap provides some welcome clarity to support long-term planning and investment decisions.

Key Takeaways

Coal is king – for a little while longer

State-owned coal assets will continue to operate to their technical life (at least 2046 for some plants), with options for extension based on system need, asset integrity, and economic viability. According to the Roadmap, this approach is estimated to reduce system investment costs by approximately $26 billion to 2035 when compared to the previous government's plan, translating to an annual avoided cost of $1,035 per household.

All generation and storage technologies have a role to play

While coal will remain a critical component of the generation mix in the medium term, the door is still open for renewables. By 2030, Queensland's energy system is forecast to include an additional 16 GW of new generation and storage capacity, including up to an 6.8 GW of wind and large-scale solar, and 3.8 GW of storage. This largely represents wind and solar projects that are already approved. The Roadmap highlights significant opportunities for private sector involvement in renewables, storage, and transmission, including major projects like CopperString and the Gladstone Project transmission upgrades. Community batteries, pumped hydro, and distributed solar are also areas of focus.

Under the Roadmap, investment in short- and medium-duration storage is prioritised, with at least 3.1 GW of short-duration batteries expected by 2030 and up to 4 GW of medium-duration storage by 2035.

The jury is still out on the fate of the Borumba pumped hydro project, but the Roadmap provides support for the development of smaller and more manageable pumped hydro energy storage (PHES) projects, including Mt Rawdon, Big T, and Capricornia.

But the real winner is gas-fired generation, which is mentioned an impressive 99 times in the 56 page report. Gas-fired generation is identified as being essential for system reliability and firming, with up to 4.1 GW expected by 2030 and up to 8.3 GW by 2035. There is an immediate plan for procurement of a new 400MW gas-fired power station in central Queensland, and further strategic investments in gas projects are planned, including the Brigalow Peaking Project, Lockyer Energy Project, and investigations for a new open-cycle gas turbine at Swanbank.

The red carpet is being rolled out for Private Capital

The Roadmap positions private sector investors at the heart of Queensland's energy transition. To facilitate this shift, the Queensland Government is establishing a new Investor Gateway to leverage QIC's infrastructure expertise and capital markets connections. The new QIC Investor Gateway is intended to provide a "front door" for private capital, offering clear pathways to partner with Government Owned Corporations and participate in new generation, storage, and transmission projects. This will be supported by a $400 million Queensland Energy Investment Fund to be managed by QIC, which is designed to catalyse collaboration and unlock private investment across the State.

No transition without Transmission

While the 500kV 'Supergrid Infrastructure Blueprint' has not survived the change in government, transmission upgrades are still central to the Roadmap. Major projects have been given the greenlight, including CopperString (connecting North and North West Queensland to the NEM) and the Gladstone Project (reinforcing Central Queensland's network). Notably, CopperString is still slated to be delivered by 2032 (at 330kV), securing a future for the Hughenden region and its world-leading wind resource. The reduced transfer capacity does mean some projects are likely to miss out, and developers will need to move quickly to demonstrate their projects are worthy of securing a connection.

A legislative and regulatory reset is underway

Regulatory change is a foot. Government has announced that legislation will be introduced this week to repeal renewable energy targets (although it continues to commit to net zero 2050), streamline transmission investment processes, and confirm public ownership of key assets.

Regional Energy Hubs will replace Renewable Energy Zones, supporting coordinated, cost-efficient (and generation source agnostic) connections for new generation and storage.

Community acceptance of projects will be used to drive delivery. In addition to the recently introduced mandatory social impact assessments and community benefit agreements for wind and solar projects, a new Code of Conduct for renewable developers under development.

Implementation will require a whole of Government approach

The Roadmap has been hotly anticipated since the Crisafulli Government came to power almost a year ago. Clarity in the proposed energy mix and support for renewables is a welcome development for the State's energy transition journey, but now is when the rubber hits the road, and what will be fundamental to the Roadmap's success is a coordinated, aligned and whole of Government approach in the same direction of travel.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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