Australia's energy landscape

Queensland’s impressive thermal generation fleet generates about 80% of the state’s energy and contains four of the youngest and most efficient coal-fired generators in the National Electricity Market, which will play an important role during the state’s transitionary period towards cleaner energy generation.

The Sunshine State faces some core energy challenges, including rising prices of electricity and gas, system security, gas availability and energy and climate policies. These challenges are exacerbated by closures of ageing coal-fired generation and gas supply restrictions in southern states, lack of investor confidence and uncertain national policy.

In 2017, the Queensland government released its Powering Queensland Plan, which outlined Queensland's short and long-term energy challenges and offered strategies to deal with these challenges. The proposed renewable energy projects will result in $2.2b in investment, 2200 new construction jobs, and a carbon dioxide reduction of 2.8m tonnes.

Coal accounts for 41% of New South Wales’ energy mix, and coal-fired generation remains the preeminent source of energy generation in the state. The New South Wales government has developed long term strategies for the future of the state’s energy generation, including making the state’s electricity market more efficient and competitive by mitigating risk, reducing costs and government caused delays and encouraging investment in modern energy technology.

With a decline of 34%, New South Wales also experienced one of the largest drops in natural gas-fired generation from 2020-21, knocking Queensland off the top spot to become the nation's leader for large-scale solar generation and displaying their continuing commitment to transitioning to clean energy.