The Queensland government has agreed to subsidize the construction of a new gas peaking plant, marking the first such project in over ten years. The Brigalow gas power station will have a capacity of 400 megawatts (MW) and is set to begin operations by 2028.
Key Takeaways
- The Queensland government provides financial support for the Brigalow gas peaking plant, a first in over ten years.
- CS Energy will purchase power from Brigalow under a 25-year hedge offtake agreement to mitigate risks associated with low wholesale electricity prices.
- The project aims to add up to 8.3 gigawatts (GW) of gas-fired generation capacity by 2035, according to the state’s energy roadmap.
Queensland’s Brigalow gas peaking plant is a joint venture between APA Group and CS Energy, set to be built next to Kogan Creek coal power station. This project follows years of planning and development, with GE Vernova contracted in 2023 for the supply of 12 aeroderivative turbines.
The Brigalow project was initially scheduled to start operations by 2026 but has been delayed until 2028 due to challenges posed by low-cost solar energy and high turbine costs. To ensure viability, CS Energy will secure power from the plant for 25 years under a hedge offtake agreement.
The Queensland government’s support is crucial as it helps offset risks associated with fluctuating electricity prices. Treasurer David Janetzki stated that this project aligns with the state’s energy roadmap, which aims to ensure affordable and reliable energy by increasing gas-fired generation capacity while scaling back coal plant closures.
Despite backing from both previous Labor and current LNP governments, the Brigalow project faces criticism for potentially limiting the growth of renewable technologies. The new Crisafulli government’s approach emphasizes a focus on gas peakers over renewables after 2030, assuming no support for new renewable projects.
Frequently Asked Questions
What is the capacity of the Brigalow gas peaking plant?
The Brigalow gas peaking plant will have a capacity of 400 megawatts (MW).
How long will CS Energy purchase power from the Brigalow plant?
CS Energy has signed a hedge offtake agreement to buy power from the Brigalow plant for 25 years.
The Queensland government’s decision to subsidize the Brigalow gas peaking plant reflects its strategy to balance affordability and reliability in energy generation. However, this move also highlights ongoing debates about the role of renewable technologies versus traditional fossil fuels in Australia’s future energy mix.
