Crisafulli Government delivers crucial gas-peaking plant in Energy Roadmap first

• Crisafulli Government announces landmark deal to construct State’s first gas-fired power station in more than a decade.
• CS Energy and APA Group to join forces on the 400MW Brigalow Peaking Power Plant in Western Downs.
• Crisafulli Government is delivering affordable, reliable and sustainable energy for all Queenslanders.
• Gas critical to future energy system reliability and firming.

The Crisafulli Government has announced a landmark deal to construct the State’s first gas-fired power station in more than a decade, helping deliver on its promise for affordable, reliable and sustainable energy for Queenslanders.

State-owned energy corporation CS Energy has entered into a joint development agreement with APA Group to deliver the Brigalow Peaking Power Plant in the Western Downs.

The agreement is the first stage of an investment partnership between a Government Owned Corporation and the private sector under the Crisafulli Government’s Energy Roadmap launched in October.    

The Brigalow plant will be located next to CS Energy’s Kogan Creek Power Station and provide fast-start capability in high-demand periods.

Once operational in 2028, the 400-megawatt gas-peaking plant will be capable of reaching full output within five minutes, delivering reliable energy to more than 150,000 Queensland homes during peak electricity demand periods.

Under the binding agreement, APA will contribute project funding, meanwhile CS Energy will operate and maintain the power plant, including physical dispatch of its output into the market.

APA’s 80 per cent share of the plant will be contracted to CS Energy under a 25-year offtake agreement.

Treasurer and Minister for Energy David Janetzki said the agreement was an example of how the Crisafulli Government was helping optimise investment and boost private sector investment in new generation.

“Our Energy Roadmap was designed to not only provide more affordable and reliable energy, it was about making Queensland an attractive destination for private sector capital,” Treasurer Janetzki said. 

“Unlike Labor’s energy plan which lacked credibility, was undeliverable and would have resulted in Queensland households paying thousands more on top of their energy bills – we recognise the need for new gas capacity to de-risk the energy system as it transitions over time.

“Gas provides a safety net for times of high demand, power outages or extended periods of low renewable energy production. 

“Energy Roadmap modelling indicates Queensland may have up to 4.1GW of gas-fired generation capacity by 2030, increasing to between 6.1GW and 8.3GW by 2035. This forecast reflects our commitment to ensuring reliability is met through additional dispatchable capacity.”

Minister for Finance, Trade, Employment and Training Ros Bates said the agreement showed Queensland’s open-for-business approach was working and delivering for Queenslanders.

“After a decade of decline under Labor, we have refocused our Government-owned electricity generators on their core business: delivering affordable, reliable, and sustainable electricity for Queenslanders, including in partnership with the private sector,” Minister Bates said.

“This partnership between CS Energy and APA is an endorsement of the Crisafulli Government’s focus on attracting the right investment, and delivering in the best interests of Queenslanders.”

Member for Callide Bryson Head said the deal was exciting for the families who call the Western Downs home.

“This brings more energy industry jobs to the Western Downs, and secures the future for the Callide electorate as the electricity powerhouse of the state,” Mr Head said.

“Importantly, this is taking local gas and turning it into electricity to deliver affordable and reliable power for households across Queensland."

CS Energy CEO Brian Gillespie said the Brigalow deal would strengthen CS Energy’s balance sheet as it focuses on improving the performance of its existing assets and building a sustainable longer-term portfolio.

“The Brigalow Peaking Power Plant is the most advanced gas power project in the State, with orders for long-lead time equipment secured and agreements for gas supply and connecting pipelines already in place,” Mr Gillespie said.

“In the coming weeks, we will commence early site works, including intersection upgrades and internal access road construction.”

In addition to the Brigalow plant, state-owned corporation Stanwell Corporation is progressing its Lockyer Energy Project and CleanCo is investigating a new open-cycle gas turbine at Swanbank.

These three projects could provide more than 700MW of new gas-fired generation capacity by the start of the new decade.

Through the Energy Roadmap’s new Investor Gateway, the Queensland Investment Corporation (QIC) will also deliver the Central Queensland Gas Power Tender for an additional 400MW by 2032 as critical insurance for long-term system security and reliability.

ENDS

MEDIA CONTACT:

Treasurer, Lauren Brown 0415 772 677

Minister Bates, Brendan Morris 0428 962 414