What’s Happening?
Nexa Advisory has released a report calling for the on-time closure of Callide Power Station, following a third major incident at Callide C in just four years. The report, completed before the April 2025 explosion, highlights persistent reliability issues and rising safety concerns.
Why It Matters?
Queensland’s ageing coal-fired power stations are nearing the end of their technical lives. The continued operation of Callide B and C threatens energy stability, increases market volatility, and drives up consumer bills.
Nexa Advisory urges the Queensland Government to redirect funding from maintenance to renewables and energy storage to ensure long-term grid reliability. “Our coal-fired power stations are reaching, and in some cases have passed, their technical life span. Our analysis shows clearly how unreliable, expensive and dirty they all are,” said Stephanie Bashir, CEO at Nexa Advisory.
“The most recent ‘explosion’ at Callide C… confirms what we already know – that ageing coal-fired assets cannot be relied on even as Band-Aid solutions.”
Local Impact
Located near Biloela, the Callide Power Station directly affects the Rockhampton region’s energy security and economic outlook. Any failures or delays in its closure impact nearby communities, local businesses, and the state’s transition plans.
“Rather than undermining confidence in the state’s clean energy transition, the $1.4 billion maintenance program… would be better spent supporting the replacement renewable generation and storage capacity already in the pipeline,” Bashir added.
By the Numbers:
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4,000 hours: Average annual downtime for each of Callide B’s two units since 2020—equal to 12 weeks offline per year.
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2,000 hours: Average yearly downtime for Callide C units between 2012 and 2020—about six weeks per unit.
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$1.4 billion: Government-committed maintenance spend that Nexa suggests could fund cleaner, more reliable energy projects.
Zoom In
Callide B and C have experienced repeated mechanical failures. In 2021 and 2022, Callide C units suffered catastrophic breakdowns. Despite repairs, reliability has not improved. Nexa’s analysis concludes both plants are no longer fit for purpose in today’s dynamic energy system.
Zoom Out
This issue reflects a broader national challenge. Ageing coal infrastructure across Australia is putting pressure on electricity networks. As more renewable projects come online, old coal plants struggle to keep up and pose increasing risks to safety, cost, and supply.
What to Look For Next?
Watch for the Queensland Government’s formal response. Will it commit to closing Callide B in 2028 and set a retirement date for Callide C? Progress on the Gladstone Grid Reinforcement and fast-tracking of renewables and storage projects will also be key indicators of energy transition momentum.
