Queensland's role in powering Australia’s next era of energy transition

Energy system stability and security is no longer an abstract policy issue; it is one of the most pressing challenges facing Australia today. As the Australian Energy Market Operator (AEMO) has consistently highlighted, securing the system while accelerating the energy transition must remain a national priority. For Queensland, this is a defining moment. The state’s natural and structural advantages position it to play a central role in strengthening Australia’s long‑term energy resilience.

Queensland’s strengths

Queensland begins from a position of considerable strength. It has a diverse and established fleet of dispatchable generation, including coal, gas, batteries and hydro, with pumped hydro forming an increasing part of future plans. This foundation provides a robust platform to support national energy security and system stability while firmed renewable capacity continues to scale.

The state’s solar resource is another clear advantage. Queensland generates substantial solar energy early in the day, delivering low‑cost supply into the market at times of strong demand along the eastern seaboard. When combined with emerging wind resources, this creates significant renewable output, reinforcing the importance of both short‑ and long‑duration storage to capture excess generation and shift it into evening peaks.

Geography further strengthens Queensland’s role. Weather conditions vary markedly across Australia, meaning that when cloud cover or low wind reduces output in southern states, Queensland can often provide clear skies, wind and high solar production. Through an interconnected grid, Queensland’s ability to export surplus renewable energy plays a consistent role in supporting national energy security.

Fuels and system resilience

Energy security extends beyond electricity to include fuels, particularly as Australia navigates the transition amid increasing regional geopolitical uncertainty. Queensland is well positioned, with strong feedstock availability, industrial capability and export infrastructure supporting the development of sustainable fuels, including low‑carbon sustainable aviation fuels. The state also plays an increasingly important role in critical minerals that underpin clean‑energy technologies.

Gas will continue to be a critical enabler of the transition, rather than a competitor to renewables. Gas peaking plants provide fast‑response, dispatchable capacity during periods of variability, supporting reliability as renewable penetration deepens. Queensland’s strong gas reserves position it well to attract investment in new peaking capacity, reinforcing its role as a stabilising force within the National Electricity Market (NEM). Recent public–private partnerships demonstrate confidence in this approach, which will remain essential as renewables and storage continue to scale.

Balancing economics and stability

There is a clear strategic case for time‑bound extensions of selected coal‑fired assets to their technical end‑of‑life to support system security during the transition. Managed well, these extensions provide breathing room while replacement capacity is delivered, supported by disciplined asset management and orderly retirement planning.

Equally important is policy certainty. Clearly defined and consistently applied coal closure dates give investors the confidence needed to sequence investment and accelerate capital into replacement technologies and fuels. This clarity supports Queensland and the broader NEM by enabling an orderly and reliable transition.

Hybrid energy parks

One of the most promising developments in the market is the emergence of large hybrid energy parks that integrate wind, solar, batteries and, increasingly, gas peaking plant within a single precinct. This model enables flexible, round‑the‑clock firmed renewable supply, allowing operators to respond dynamically to weather conditions and market demand. Queensland is well positioned to lead Australia in this next evolution of renewable development.

Transmission as the backbone

A resilient future energy system depends on modern, well‑planned transmission and distribution networks. Strategic investment in transmission unlocks renewable energy zones, supports storage deployment and enables the system to respond to growing and changing demand. While Queensland’s scale and geography present challenges, they also create opportunities for innovative approaches to planning, investment and partnership.

Delivering this infrastructure in a way that builds trust and long‑term value for communities is equally critical. Meaningful engagement with landholders and local suppliers, respect for cultural heritage, and careful stewardship of biodiversity, waterways and agriculture are essential to achieving enduring outcomes. Energy expansion must proceed in a way that balances ambition with responsibility.

New demand pressures and climate resilience

Data centres are emerging as a significant new source of electricity demand, comparable in scale and intensity to traditional heavy industries. The challenge is not the load itself, but the speed at which these facilities require access to low‑cost, reliable energy and supporting infrastructure. To attract this investment, Queensland must ensure timely delivery of new generation, storage and transmission, with renewables remaining a highly attractive supply option.

At the same time, Queensland’s energy system will increasingly be tested by extreme weather, including cyclones, floods, fires and drought. Building infrastructure that can withstand these conditions requires robust engineering supported by integrated modelling, stress testing and scenario analysis.

A resilient Queensland energy system is one that continues to attract investment, keeps the lights on for residents, and supports communities and the environment. As the state prepares to host the Brisbane 2032 Olympic Games, Queensland has a powerful opportunity to demonstrate Australia’s commitment to secure, sustainable energy to a global audience.