$110m handout for accident-prone coal station to hit Qld hip pockets

Breaking news today that Queensland taxpayers will be paying an extra $110 million for the Callide power station's coal supply raises serious alarm bells about the power station's long-term viability, according to the Queensland Conservation Council.

The Queensland Government-owned CS Energy has agreed to pay 80 per cent more for coal supply to the Callide B and C power stations. This comes after repeated break downs and issues at the Callide power station.

The conservation council is calling on the Queensland Government to be upfront about the dire economic situation at Callide and provide certainty to the local community by committing to close Callide B on schedule.

Queensland Conservation Council's campaigner Stephanie Gray said

The time of cheap coal is over. Now our ageing and increasingly unreliable coal-fired power stations are becoming more expensive to run and it's Queenslanders who ultimately have to pay the price.

Callide B is scheduled to retire in 2028 at the end of its technical life. The Queensland Government is now considering delaying its closure, which we estimate could cost taxpayers up to $420 million per year.

This deal shows that the economic woes of coal-fired power stations don’t stop at the stations themselves and also extend to the coal mines. A responsible government should plan for the future and invest in diversifying the local economy, not pretend the issue will go away.

Queensland’s ageing coal-fired power stations broke down a staggering 78 times over the last summer period. To ensure a reliable energy supply and manage electricity prices, we need new renewable energy and storage supply coming online.

That’s why it’s so concerning that the Queensland LNP is signalling Queensland is closed for clean business by pledging to repeal our renewable energy targets and implement impractically designed planning changes that could make it very difficult to build new energy projects.

Responsible governments look beyond their term of government and plan for the future. Politicians that are trying to derail investment in renewable energy and new clean manufacturing industries are sabotaging the future of regional Queensland communities.

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