Progress: potential Retirement of Queensland’s Gladstone Power Station
Smart Energy Council Responds to Notification
October 1, 2025
The Smart Energy Council acknowledges today’s confirmation by Rio Tinto that CS Energy has notified the Australian Energy Market Operator (AEMO) of the potential retirement of the Gladstone Power Station (GPS) in March 2029, in line with the expiry of existing supply and operational arrangements.
While this announcement ensures compliance with market rules and no final decision has yet been made, Smart Energy Council Chief Executive John Grimes says it marks a significant moment for Queensland’s energy transition and for the workers and communities connected to the power station.
“Today will be a difficult day for workers at the Gladstone Power Station, and the Smart Energy Council extends its heartfelt thoughts to those employees,” Mr Grimes said.
“For half a century, the Gladstone Power Station has provided power to industry and the community. However, like all ageing coal-fired generators in Australia, increasing unreliability means their days are clearly coming to an end.”
“Australia’s coal fleet is the Model T Ford of the energy sector — it powered the masses, but that time has passed. We are now living in the age of electric vehicles, an era where reliable, low-cost, clean energy is rapidly replacing the need for coal and gas.”
A New Era for Queensland
Queensland is particularly well-placed to benefit from this transition. With abundant solar and wind resources, renewable hydrogen potential, and a highly skilled workforce, the state can lead the clean energy revolution.
“Queensland has the opportunity to create thousands of secure new jobs while delivering affordable, reliable, clean power for generations to come,” Mr Grimes said.
As the Queensland Government prepares to release its Energy Roadmap, the Smart Energy Council will continue to advocate for policies that support workers, communities, and industries as coal retires from the grid. Transition planning, workforce development, and renewable investment will be essential to ensuring that regions like Gladstone thrive in the decades to come.
What’s happened
- CS Energy has notified AEMO of the potential retirement of Gladstone Power Station in March 2029, up to six years earlier than originally planned. Workers were told this morning.
- There are some caveats – Rio’s press release left the door open to push the dates back “if market and other factors allow”
- Gladstone is Queensland’s oldest and largest coal-fired power station.
- The QLD government appears to be blindsided. “Speaking in Cairns on Wednesday morning, Premier David Crisafulli said he was unaware of the impending announcement.”
- Here’s the ABC story
Key messages
- Queensland’s heavy industry and the private sector are moving away from expensive unreliable coal and towards clean, low-cost renewables.
- This announcement shows the Queensland Crisafulli Government is out of touch with reality if they deliver an energy plan next week that keeps Queensland’s ageing and increasingly unreliable state-owned coal power stations running for ‘many, many decades’.
- The Queensland Crisafulli Government needs to put ideology aside, follow the lead of the private sector, and plan for the timely closure of the state-owned coal power stations.
- Rio Tinto, Queensland’s largest energy user, has made the call to repower their Gladstone refineries and smelter with firmed renewable energy because they’ve made it clear that coal is too expensive for them to remain globally competitive.
- The Queensland Government must ensure transmission and generation are rolled out fast to save jobs and industry across regional Queensland.
- Politicians that pretend that coal is going to be around forever are failing regional communities because they’re hampering investment in new renewable energy and clean manufacturing industries that can power regional economies long into the future.
- Gladstone has a long, proud history as the industrial powerhouse of Queensland. This legacy can continue long into the future with the right investment in local renewable energy and clean industry.
- Gladstone has all the right ingredients to be a clean manufacturing powerhouse, and produce export materials like green iron, because of the region’s impressive solar and wind potential and skilled workforce.
- Gladstone power station has a big carbon footprint emitting approximately 6 MtCO2e/year for the last five years. Bringing forward its closure by 6 years would save approximately 36 MtCO2e.
What next:
- Energy Minister David Janetzki is due to announce Queensland’s energy plan on October 10 next week.
- After the Energy Minister initially said that the plan would include closure dates for coal fired power stations, this was shut down by Premier David Crisafulli on the same day. One LNP MP went so far as to say coal would be around for “many, many decades.”
Facts about Gladstone Power Station
- Gladstone power station is the largest in QLD, consisting of 6 units of 280 MW each (1680 MW total)
- Gladstone power station is the oldest in QLD, commissioned in 1976 (it will be 53 years old in 2029)
- Gladstone power station is the dirtiest coal fired power station in QLD, with an emissions intensity of 0.99 tCO2e/MWh.
- The power station has emitted approximately 6 MtCO2e/year for the last five years. Bringing forward its closure by 6 years would save approximately 36 MtCO2e.
- Gladstone power station has the lowest capacity factor of all QLD coal fired power stations.
The average capacity factor of Gladstone has sunk below 45 per cent since 2020, well under the black-coal fleet average of around 55 per cent. This low output is driven by a high average total downtime across its six units of 14,800 hours in that period – equivalent to each unit remaining offline for over 14 weeks per year. – Nexa, Coal performance in the NEM: Gladstone Power Station
RIO TINTO PRESS RELEASE
MELBOURNE, Australia– The Gladstone Power Station (GPS) Joint Venture confirms that CS Energy has formally notified the Australian Energy Market Operator (AEMO) of the potential retirement of GPS in March 2029, aligning with the expiry of existing supply and operational arrangements.
The notification ensures compliance with the National Electricity Rules to provide notice of closure of electricity generators 3.5 years in advance. The notice period can be extended at any time.
No final decision has been made to retire GPS, which has operated since 1976, and there is potential to extend the life of the power station should market and other factors allow.
There is no immediate impact of this notification on GPS operations. Existing power supply contracts, including to Boyne Smelters Ltd, will remain in place until their scheduled expiry in March 2029.
The JV participants recognise the contribution of GPS to the Gladstone community and are committed to work with the operator NRG Gladstone Operating Services to ensure transparent and timely engagement with employees, contractors and suppliers throughout this process.
Between now and March 2029, the JV participants will engage with stakeholders on the energy market and on options for the future use of the site, which will inform the timeline and strategy for retirement of the facility.
GPS is an unincorporated joint venture of which Rio Tinto has a 42.125% stake. More information can be found here.
Notification was submitted to AEMO by CS Energy at the recommendation of the Joint Venture in CS Energy’s capacity as the nominated generator for GPS in the National Energy Market. CS Energy trades the output of GPS in excess of the Boyne Smelter requirements.
Contacts
Please direct all enquiries to media.enquiries@riotinto.com.