Callide must close on time - it is unreliable and potentially dangerous
Nexa Advisory
Friday, April 11, 2025
This report analyses the performance of the Callide Power Station in Queensland between 2012 and 2024 and was completed prior to the most recent incident at the plant (April 2025), but its publication has been accelerated in order to support discussion of ways forward for the Queensland Government and CS Energy.
Nexa Advisory is analysing the performance and reliability of Australia’s remaining coal-fired power stations as they approach the end of their technical lives. Nexa’s focus is on the issues posed for electricity consumers and Australia’s energy transition. The reports also make recommendations on ways forward, where appropriate.
Stephanie Bashir, CEO at Nexa Advisory, said:
"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.
"The most recent ‘explosion’ at Callide C that occurred earlier in April is the third major incident at this power station in four years and confirms what we already know – that ageing coal-fired assets cannot be relied on even as Band-Aid solutions.
"This incident shows that even after the extensive work and maintenance since 2021, Callide C is beyond repair.
"It is yet another example of why it is imperative to shut down coal-fired power stations on time. If extended, their frequent and unplanned outages will continue to contribute to market volatility – which ultimately drives higher consumer bills.
"Rather than undermining confidence in the state’s clean energy transition, the $1.4 billion maintenance program committed to by the Queensland Government would be better spent supporting the replacement renewable generation and storage capacity already in the pipeline, as well as consumer energy solutions to ensure a reliable and resilient energy system for Queenslanders."
It is clear from the analysis in this report that the 700 MW Callide B and 844 MW Callide C should not be relied on to provide electricity for Queensland.
Nexa Advisory found that it has consistently faced age-related operational challenges that result in poor reliability and incompatibility with today’s dynamic energy system.
- Callide B has high downtime, and frequent unplanned outages over the last decade. Since 2020, the average total downtime across its two units has been around 4,000 hours - equivalent to each unit being offline for 12 weeks a year.
- Callide C’s units experienced an average of 2,000 hours of annual downtime each between 2012 and 2020 – equivalent to about six weeks per unit each year. It then experienced the catastrophic failure of one of its units in 2021 (it remained offline until August 2024), and the subsequent failure of the other unit in 2022 (returning to service in April 2024).
In this report, Nexa Advisory offers the Queensland Government several recommendations on the way forward:
- Commit to the on-time closure of Callide B in 2028 and set a date for the retirement of Callide C to give a clear signal to investors in and developers of the required renewable replacement capacity and storage.
- Lean into new capacity build: Maintain the current rate of renewable energy development and deliver the 18.5GW of approved projects currently in the pipeline.
- Accelerate near-term approvals: Expedite planning approvals for projects deemed to be critical for the state’s energy transition.
- Enable timely transmission delivery: The Queensland Government and Powerlink must ensure the Gladstone Grid Reinforcement is delivered efficiently and on schedule (optimally by 2030-31).
- Prioritise and accelerate smaller modular and deep energy storage projects as a replacement for the cancelled Pioneer-Burdekin project to maintain reliability.
- Leverage the untapped potential of consumer energy solutions for homes and businesses to help meet Queensland's energy needs, directly reduce consumer bills and also support achievement of emissions commitments.
About Nexa Advisory
Nexa is an advisory firm with an unwavering focus on accelerating the clean energy transition, in a way that provides secure, reliable, and affordable power for consumers of all types.
Nexa Advisory is a team of experienced specialists in the energy market, policy and regulation design, stakeholder engagement, and advocacy. We work with public and private clients including renewable energy developers, investors and climate impact philanthropists to help them get Australia’s clean energy transition done.
Nexa Advisory stands at the nexus of the energy sector’s complex web of stakeholders. We support and direct their dialogue so as to remove the roadblocks to the transition.
We have a track record in policy creation, advocacy, political risk assessment, and project delivery. We are holistic in our approach and deliver solutions with people in mind, and commercial intent.
For enquiries or interviews with Stephanie Bashir:
Stephanie Bashir, Principal, Nexa Advisory
Email: [email protected]
Phone: +61 402 060 120
Vanessa Puli, Senior Communications Counsel
Phone: +61 416623377