Coal closure, gas extension


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Hey Reader, in today's edition:

  • Coal roadmap rerouted
  • Transition rests on supply chains
  • Torrens Island extension

Gladstone coal to close early

Workers at the Gladstone Power Station were notified yesterday that Queensland's largest and oldest coal-fired power station would likely close in March 2029, six years earlier than planned. Co-owners Rio Tinto (ASX: RIO) said the timeline aligned with the expiry of existing supply and operational arrangements.

And while Rio reserved the possibility of reopening the station if the need arose — a point emphasised by the Gladstone Region Mayor Matt Burnett — environmentalists celebrated the decision as a death knell. “Rio Tinto have made this decision based on their economic assessment that renewable energy with storage is cheaper and more reliable than an ageing coal power station,” said Queensland Conservation Council Director Dave Copeman.

But Tara Diamond, Deputy CEO of the Australian Resources and Energy Employers Association warned that “shutting off proven coal-fired power before proven alternatives are in place will drive up costs, send industry investment elsewhere and hollow out Queensland’s economic base.”

The news comes as the Queensland government prepares to hand down its five-year Energy Roadmap on October 10.

Expert view

"Rio Tinto’s move to retire the Gladstone Power Station, backed by major renewable power purchase agreements, shows their strong ambition and commitment to decarbonise their operations. This builds on their existing efforts, which are critical to securing jobs and Gladstone’s future as an industrial powerhouse, especially as a global leader in aluminium production.

Our research shows this ambition can only be realised if key bottlenecks in transmission and the renewable build-out are unblocked. Unless these projects are built and delivered on time, Gladstone’s industries risk higher costs and delayed decarbonisation — action and delivery now matter more than announcements.”

Matt McKee
Chief Researcher, Beyond Zero Emissions

Transition rests on supply chains, and people

Taking the time to explain the how of the “black box” behind the Climate Change Authority’s emissions reduction advice to the government, CCA deputy CEO Eliza Murray told the ANU Energy Update the Authority factored in both the Trump presidency and the challenges of supply chains in setting its 62-70% range.

“Looking more broadly at how the impacts in one part of the world can reverberate along supply chains and affect our decarbonisation options was a really important part of this analysis,” Murray said.

And she said now was the time for Australia to be talking to its trading partners both upstream and downstream about how the transition will affect supply chains. “ It's not just a target, it's trade policy, industrial strategy, foreign policy, all rolled into one.”

Grattan Institute Energy and Climate Change Program director Alison Reeve reiterated the supply chain challenge, saying in the past people had made assumptions that equipment, networks and people would just be there.

“Because most of the stuff we've been doing to date has actually been small changes at the margin. And we're not in small changes at the margin anymore, we're at big chunks of changes.

Bringing it back to individuals, Murray addressed claims the target is not ambitious by asking the audience who among them knew what their individual carbon footprint was.

“The national average is 16.5 tonnes of carbon a year. That's one of the highest in the world. Would you commit to bringing that down by 62 to 70% in the next decade?
Just pretend you're an average Australian. It sounds like a lot to me, but the reality is that's not actually enough because we've got a carbon budget that we've got to allocate across the population, and we've got a growing population.
So once you factor in the projected population growth, the reduction that we're asking for per person from that 16.5 average is 76 to 81%. And that means coming from over 16 to 7.5 tonnes at the lower end (or 6 at the higher end). So you've got 10 years to bring it down by 10 tonnes. Going on a decarb diet, bringing that down one tonne a year, every year over the next decade. That's pretty ambitious.”
Eliza Murray
Deputy CEO, Climate Change Authority

Catch Up

Capital

The South Australian Government locked in a deal with AGL to extend the life of the Torrens Island B gas fired power station to June 2028, for an undisclosed sum. The government blamed delays to the Project Energy Connect interconnector on the NSW side of the border.

The NSW Government opened a competitive tender targeting 500MW of firming capacity to be operational by November 2027. Projects can include batteries (including groups of smaller batteries), gas generation or demand response and must be able to supply additional capacity or reduce load at short notice for the Sydney-Newcastle-Wollongong grid. NSW is projected to experience firm capacity shortfalls for the summer of 2027-28.

The NSW tender comes as Transgrid prepares to offer contracts to batteries configured in grid-forming mode, with initial request proposals from select battery owners for services expected to begin in the second half of 2026. The tender will seek proposals from batteries providing approximately 1GW of stabilising services, out of Transgrid’s eventual 5GW target.

Solar and battery automation specialist Amber raised $10 million from major UK energy supplier E.ON Next UK and climate technology investor Virescent Ventures. Amber said the funding would support licensing its platform to utilities internationally.


Projects

High voltage infrastructure company Intium was awarded a build, own, operate and maintain contract by European Energy Australia for the delivery of connection infrastructure at the 32MW Mulwala Solar Farm, in southern New South Wales. Mulwala is scheduled to be operating by 2026.

Yesterday, Neoen’s Collie Battery 2 started delivering a 300MW grid capacity service contract to AEMO. Combined with Collie 1 (219MW), the pair are Australia’s largest battery in operation and the first to exceed 2GWh of storage capacity. The company has also commenced work on its 164MW Muchea Battery in Western Australia

The 300MW Walla Walla Solar Farm in the Riverina region of NSW has reached completion. Developers Fotowatio Renewable Ventures Australia have signed a 15-year power purchase agreement with Microsoft to supply renewable energy from the solar farm to the electricity grid.

Vopak’s proposed floating liquefied natural gas import terminal in Melbourne’s Port Phillip Bay engaged Seapeak, a specialist in storage and transportation of gas liquids, to provide the floating storage and regasification unit. The terminal will be located approximately 19 kilometres east from Avalon. Vopak is currently undertaking additional requirements for an environmental effects statement, before the project is formally approved, and will report early next year.


Policy

A $50 million fund to support Australian students wanting to study clean energy trades is yet to pay out a single dollar, and has not even released eligibility guidelines, more than 18 months after it was announced. In federal budget papers from last year, money had been allocated over five years from 2023-24. (ABC)

Victorian commercial and industrial (C&I) enterprises can tap incentives of up to $34,000 to install 30kW to 200kW solar systems thanks to a new rule, known as ‘Activity 47’, under the Victorian Energy Upgrades program. “There are lots of C&I rooftops state-wide presenting significant untapped opportunity. This activity 47 is a great way to harness the opportunities for businesses to take control of their own energy supply and reduce their energy bills,” said Energy Savings Industry Association President Ric Brazzale.


Regulation

The Australian Energy Regulator handed down draft revenue determinations for electricity distribution network service providers in Victoria for 2026-31, saying it was not satisfied that the proposed expenditure was “prudent and efficient”. Knock-backs ranged from 13.1% less than proposed for Jemena to 5.4% less than proposed for CitiPower. The distributors have until 1 December to respond, with a community forum to be held on 14 October.

Victoria’s Essential Services Commission is making changes to the Energy Retail Code of Practice to protect the most vulnerable consumers. Rolling out over the next 12 months, retailers will be required to move struggling customers onto their cheapest plan, ensure long-term customers are paying a reasonable price, and have effective processes available for customers to switch to their best offer, amongst other changes. “Retailers have been limited in being able to move customers to different plans because of the need for explicit informed consent. These changes mean they will now be able to automatically switch customers in payment difficulties to plans that better suit them,” said Louisa Kinnear, Chief Executive of the Australian Energy Council.


Technology

NRMA Insurance awarded five climate tech ventures $100,000 each to help scale their ideas. Among the grants, DNA Energy’s air conditioning load control system helps buildings use energy more intelligently; Rainstick's Variable Electric Field Treatment uses electricity to mimic the natural effects of lightning to grow crops bigger, faster and more sustainably; and VALAI's Digital Home Energy Assessment and Decision Support Tools make it easier for people to use their household water more efficiently.


Climate

The Australian Firefighters Climate Alliance poured water on suggestions that renewable energy infrastructure – including turbines, solar panels and batteries – posed an increased fire risk. Spokesperson Cam Walker said “bad faith actors are amplifying misinformation in order to slow the energy transition”.

His comments came as social trends researcher Rebecca Huntley told a hearing of the Senate Select Committee delving into the prevalence and impacts of misinformation and disinformation related to climate change that since the COVID pandemic, people in focus groups had shifted to talking about wind turbines bursting into flames and electric vehicle fires being unable to put out. “This kind of idea that a renewable energy future is a more flammable future.”

Pope Leo XIV has denounced people who deny climate change, arguing that they are contributing to the destruction of God's creation. "Some have chosen to deride the increasingly evident science of climate change, to ridicule those who speak of global warming and even to claim the poor for the very thing that affects them most," he said on the 10th anniversary of Laudato Si, a formal doctrinal letter that called for the protection of the planet. His comments come just a week after Donald Trump called climate change “the greatest con job ever perpetrated on the world” in a speech at the United Nations. (Politico)


People

One-time advisor to Tony Blair Nick Rowley has been appointed chair of the NSW Net Zero Commission.

Corporate Carbon Group (CCG) has appointed Marc Train as Chief Executive Officer, with Gary Wyatt transitioning from Managing Director to Executive Director.

German renewables support services firm meteocontrol has appointed Jawad Sayed as its new Regional Manager for Australia and the Oceania region.

Former environment reporter for The Age Miki Perkins has taken on the role of environment and energy editor at The Conversation.

Patrick Quin will start a new position as General Manager at Hart Bioenergy.


Research

Perovskite solar panels gradually reduced their performance over a four-year field trial in Germany and Slovenia, but only in winter. In summer, the blue-light-rich spectrum enhanced generation. Although high temperatures typically reduce voltage in fresh devices, this effect was offset in the older cells by an increase in the fill factor. In winter, the four-year-old devices did not fully recover voltage during daylight, leading to reduced performance. (Nature Energy)

What's On

October 2
The COP drop: The latest on Australia's role and opportunity

Climate and diplomacy expert Dean Bialek will join Clean Energy Investor Group CEO Richie Merzian, Pacific Community-SPC Director of Climate Change and Sustainability Coral Pasisi and Climateworks Centre System Lead for Sustainable Communities Kylie Turner at this webinar from The Energy, moderated by The Energy Advisory Board Member Dan Cass.


October 7-8
NEM Development Conference 2025

EnergyAustralia Managing Director Mark Collette and Powerlink CEO Paul Simshauser will headline this Brisbane event hosted by Griffith University and UQ, which will also feature Queensland Farmers Federation CEO Jo Sheppard, NEM Review panel Chair Tim Nelson, Victoria Energy Policy Centre Director Bruce Mountain, University of Sydney Professor of Law Penny Crossley, Iberdrola GM Regulation & Energy Policy Joel Gilmore and Global Roam CEO Paul McArdle.


October 15
The Energy Q&A with the NEM Review panel

NEM Review panel Tim Nelson, Paula Conboy, Ava Hancock and Phil Hirschhorn will speak at this webinar moderated by The Energy Advisory Board Member Anna Hancock.


October 16-17
IGCC Summit 2025: Decoding the transition

Generation Investment Management Founding Partner and former US Vice President Al Gore will headline this Sydney event from the Investor Group on Climate Change. Other speakers include NSW Energy Minister Penny Sharpe, Climate Change Authority Chair Matt Kean, Energy Efficiency Council CEO Luke Menzel, ARENA Associate Director Tanya Hodgeson and Net Zero Economy Agency CEO David Shankey.


October 29-30
All Energy Australia

Victorian Energy Minister Lily D’Ambrosio, incoming Clean Energy Council CEO Jackie Trad and Pacific Green CEO Joel Alexander are among the speakers at this year’s All Energy event in Melbourne.

The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

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