Cheaper power from renewables undermined by ageing coal failures

The Queensland Conservation Council (QCC) has welcomed a 10% reduction in household electricity prices under the Australian Energy Regulator's (AER) draft 2026-27 Default Market Offer, but warned that this renewable energy driven progress could be undermined by continued reliance on ageing, breakdown prone coal and expensive gas.

Today’s announcement by the AER shows that new renewable energy supply is driving lower electricity prices for Queensland, with residential prices proposed to be 10.1% lower than 2025-26 and small business prices 12.8% lower. However, ongoing outages at ageing coal power stations and international gas price volatility continue to risk prices rising again in the future.

QCC is a member of the Power Together Coalition which works to protect vulnerable consumers from long-term price rises by advocating for accelerated investment in renewable energy and storage for all Queenslanders.

Queensland Conservation Council, Climate Lead, Jennifer Brown said

This announcement is clear evidence that renewable energy is delivering lower power prices for Queenslanders.

We are so pleased to see that all South East Queenslanders will be able to access free power in the middle of the day, thanks to the solar sharer tariff, spreading the benefits of solar to all households including renters and apartment dwellers.

33% of Queensland’s electricity came from wind and solar last year. Without the rapid growth in renewable energy, Queenslanders would be facing much higher power bills right now.

Unfortunately, we don’t have enough renewable energy to protect us from ongoing outages at ageing coal fired power stations and international gas price hikes into the future.

Our recent analysis showed that from April 2025 - March 2026, Queensland’s coal power stations have broken down 108 times. We can’t continue to rely on these ageing coal clunkers.

Renewable energy has reduced Queensland’s reliance on expensive gas. But every breakdown at coal fired power stations makes us more exposed to international gas prices.

Energy retailers will pass on risk to customers in the form of higher prices. Clinging to breakdown prone coal and expensive internationally tied gas ultimately risks more pressure on households and small businesses if prices rise again.

We need to see well planned new renewable energy backed by storage to keep Queensland’s electricity affordable and reliable into the future. This includes household batteries, which Queenslanders have taken up in droves over the last year.

If the Queensland Government continues to ideologically back ageing coal power stations and expensive gas, instead of renewable energy households will end up paying the price.

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