Australia’s Coal State Ditches Plan to Shut Coal Power Plants

The Australian state of Queensland, home to one of the world’s largest coal reserves, is abolishing a previous state government decision to close all its coal-fired power plants by 2035, as it vows to pursue a sensible and pragmatic plan to meet its energy needs.  

The Queensland government on Friday unveiled an Energy Roadmap, which is based on economics and engineering, not ideology, Queensland Treasurer and Minister for Energy David Janetzki said.

“The former Labor Government’s ideological decision to close coal units by 2035, regardless of their condition, is officially abolished,” Janetzki said in a statement.

“Queensland’s coal-fired fleet is the youngest in the country and state-owned coal generators will continue to operate for as long as they are needed in the system and supported by the market.”

Queensland relies on coal to meet more than half of its electricity needs. It is also Australia’s top coal-producing state with 224 million tons of coal produced from 59 active mines in the 12 months to May 2025. Coal is a major economic driver in the state, which exports one-eighth of all the world’s coal. In the 12 months to May 2025, Queensland exported thermal and metallurgical coal worth US$30 billion (AUS$45.8 billion).

Unlike the previous state government, the new Queensland cabinet wants to keep coal and gas power plants for as long as necessary to provide reliable and affordable electricity, while also providing support for private sector investment in renewables and firming projects. The Energy Roadmap includes a US$6.6 million (AUS$10 million) investment into community-level batteries for greater solar storage and to help manage minimum system load.

Critics of Queensland’s reversal of the planned coal power plant closures argue that the new energy roadmap threatens Australia’s federal climate targets. The Australian government last month set a 2035 emissions target, an interim goal on the road to net zero by 2050. The government set a national target to reduce emissions by 62–70% below 2005 levels by 2035.

By Tsvetana Paraskova for Oilprice.com

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