Queensland Energy Roadmap 2025

Background

The Queensland Government delivered the Queensland Energy Roadmap 2025 (Energy Roadmap) on 10 October 2025. The Energy Roadmap serves as a five-year plan for Queensland’s energy system with a view to delivering affordable, reliable and sustainable energy.

The Energy Roadmap replaces the previous Government’s 2022 Energy and Jobs Plan, refocusing infrastructure initiatives and priorities, with a greater focus on private sector investment going forward.

Queensland Energy Roadmap 2025 Focus Areas 

Key takeaways from the Energy Roadmap

• (Objectives) The Energy Roadmap focuses on affordability, reliability and sustainability.
  • Affordability initiatives focus primarily on the energy mix (including the role of coal and gas and the need for other technologies to be economically viable), to deliver tangible electricity cost savings for consumers.
  • Reliability is focused on the $1.6 billion Electricity Maintenance Guarantee to keep existing government owned corporation (GOC) assets operating reliably.
  • Sustainability focuses on driving further investment in renewables, gas and storage, including through the QIC Investor Gateway.
• (Coal) State-owned coal generators are planned to operate at least until the end of their technical lives and possibly beyond – with extensions to be considered based on system need, asset integrity and economic viability. This is anticipated to see coal continue as a key source of generation throughout the 2030s and into the 2040s. Queensland has comparatively more flexibility to prolong the use of coal generators as approximately two-thirds of coal generation in Queensland is still State-owned.
• (Gas) The Energy Roadmap identifies a need for at least 2.6 GW of new gas generation by 2035 to meet Queensland’s forecast needs. The Energy Roadmap also announced a Central Queensland Gas Power Tender for private sector and GOCs to deliver an additional 400 MW of gas-fired generation capacity to protect long-term system security and reliability. That process commences with market sounding by the end of this year (2025).
• (Private capital) A key theme of the Energy Roadmap is a more active role for the private sector in delivering new infrastructure, supported by enabling actions of the State.
  • QIC will provide a gateway to investment opportunities for the private sector, with its role being to identify, filter, negotiate, execute and oversee direct and indirect investment into generation and storage assets; and
  • the GOCs will partner with the private sector on new investment opportunities, but these opportunities will need to meet portfolio need and deliver commercial value.

This will reduce pressure on the State’s balance sheet.

• (Green light projects) Immediate infrastructure priorities will be:
  • injecting sustaining capex into existing GOC owned generation and storage assets;
  • delivering new gas generation (including the 400 MW Central Queensland Gas Power Tender, CS Energy’s Brigalow Peaking Plant, Stanwell’s Lockyer Energy Project and CleanCo’s potential Swanbank E open-cycle gas turbine);
  • delivering the Eastern Link of the CopperString Project; and
  • delivering the Gladstone Project.
• (Amber light projects) Medium to long term priorities – dependent on market signals and system requirements – may include:
  • major transmission augmentation south and north of Central Queensland; and
  • deep storage options, including pumped hydro.
• (Renewable Energy Targets) Queensland’s existing renewable energy targets will be formally repealed, though an overall target of net zero by 2050 will be maintained.
• (No privatisation of existing generation) While the Energy Roadmap emphasises the need for private sector investment, it confirms the Queensland Government remains committed to 100 per cent public ownership of its existing operational generation portfolio.

Coal: operation to technical life

With around 8 GW of coal-fired generation capacity supplying more than 60% of Queensland’s total demand, the Energy Roadmap confirms that State-owned coal assets will operate at least to technical lives, with the potential to further extend into the future where justified by system need, asset integrity and economic viability. The operation of state-owned coal assets to technical life will provide for State-owned coal assets to underpin baseload power requirements for Queensland through to at least the 2030s and 2040s.

To support reliability, the Queensland Government has committed $1.6 billion through the Electricity Maintenance Guarantee to maintain State-owned coal assets and ensure they can operate as needed into the future. Under the Electricity Maintenance Guarantee, GOCs are accountable for asset maintenance and performance, and audited performance against KPIs will be published in annual reports to be tabled in Parliament each year.

Gas: a critical firming resource

Gas is positioned as a critical technology for system reliability and firming as the energy system transitions over time. The Energy Roadmap identifies a need for at least 2.6 GW of new gas generation by 2035 to meet Queensland’s forecast needs, presenting an opportunity for private sector investment.

The GOCs will continue to progress options to deliver over 700 MW of new gas fired generation capacity by 2032, including CS Energy’s 400 MW Brigalow Gas Peaker, Stanwell’s Lockyer Energy Project (120 MW in Stage 1, with potential for a further 850 MW in Stage 2) and CleanCo’s 250MW open-cycle gas turbine at Swanbank.  

The Energy Roadmap also announced a Central Queensland Gas Power Tender for private sector and GOCs to deliver an additional 400 MW of gas-fired generation capacity to protect long-term system security and reliability in Central Queensland.

Indicative timeframes for the Central Queensland Gas Power Tender

Private sector and energy GOCs: opportunity for partnership

The Energy Roadmap envisions the private sector having an enhanced role to deliver new infrastructure needed over the next five years and beyond, whereas energy GOCs will largely focus on their core business to build a longer-term portfolio, potentially partnering with the private sector through the QIC Investor Gateway. 

The Queensland Government will establish the QIC Investor Gateway, providing a pathway for developers and investors to partner with the Government on new energy projects. The QIC Investor Gateway will provide QIC with a mandate to:

• attract private sector capital to meet the new energy infrastructure and investment requirements of Queensland;
• match investor interest with energy GOC portfolio needs and market demand, including through project partnerships and contracting opportunities; and
• develop innovative approaches to blend finance and maximise whole-of-State outcomes.

The Queensland Government will contribute $400 million to the QIC-managed Queensland Energy Investment Fund. The Fund will support the development of new generation and storage assets in Queensland, focusing on a range of technologies including gas, renewables and storage. The Fund will work to foster collaboration with the private sector and GOCs.

Storage: scaled through a diversified pathway

The Energy Roadmap recognises that storage is essential to firm variable renewables and manage minimum system load. The QIC Investor Gateway will lead future investigation and investment partnerships with the private sector on all prospective smaller pumped hydro energy storage (PHES) projects for the Queensland Government and GOCs. In addition to its current oversight of the Borumba PHES, QIC will also oversee the Mt Rawdon, Big T and Capricornia PHES projects.

The Queensland Government is also supporting Energy Queensland to continue its rollout of community batteries across the distribution network, including through a $10 million commitment to catalyse further private sector investment.  

Transmission: targeted development

Rather than committing to a multi-line 500 kV transmission ‘backbone’, the Queensland Government is focused on targeted transmission augmentation to preserve optionality and ensure timely delivery of transmission infrastructure. The Energy Roadmap highlights the following strategic projects:

• the QIC-led delivery of the 330 kV CopperString Eastern Link (major construction by 2028 and commercial operations by 2032), which will catalyse new generation and storage investment in North and North West Queensland; and
• Powerlink’s Gladstone Project, which will deliver network upgrades and reinforcements in Central Queensland ahead of the Gladstone Power Station’s potential retirement in 2029.

A $200 million North West Energy Fund, in partnership with the private sector, will also support local generation and storage solutions across Mt Isa, Cloncurry, Julia Creek and Richmond.

Renewables: disciplined development and new Code of Conduct

The Energy Roadmap introduces ‘Regional Energy Hubs’, replacing ‘renewable energy zones’ in the legislative framework for gas, renewable energy and storage development. Regional Energy Hubs are intended to be market-led, based on private sector interest and development activity and aligned to community expectations. The development of Regional Energy Hubs will consider broader system requirements, such as resource availability, existing grid infrastructure and proximity to major load centres. This will require new legislation.

The Queensland Government is also progressing a new Code of Conduct for renewable energy developers, which is expected to guide responsible behaviour and set expectations around best industry practice. Industry and peak bodies will be consulted ahead of the Code of Conduct being finalised.

What are the implications of the Energy Roadmap?

With the release of the Energy Roadmap, the Queensland Government has clearly set out its plans for energy generation and storage delivery over the next 20 years, including the respective roles for the GOCs, QIC and the private sector.

The Energy Roadmap seeks to find the right balance between affordability, reliability and sustainability, leveraging the skills and expertise of the public and private sectors, while easing pressure on the State’s balance sheet.

Going forward:

• there is significant work ahead for each of the GOCs in delivering on announced infrastructure priorities of the Government and working with QIC on new investments and opportunities with the private sector (e.g. in gas, storage and renewables), in addition to implementing the Electricity Maintenance Guarantee; and
• there is a more clearly defined role for the private sector to play in driving infrastructure delivery (gas, storage and renewables), with the ability to leverage QIC’s expertise in structuring and delivering infrastructure, to partner with GOCs, and also to work with Government to deliver new Regional Energy Hubs.

The new focus on joint delivery of new infrastructure between GOCs and the private sector will require careful structuring to ensure it delivers on the objectives of the GOCs, private sector and the State, including taking into account balance sheet treatment and tax outcomes for all parties.

If you have any questions or would like to further discuss the Energy Roadmap, please contact one of our team members.