Callide B turbine hall

Statement on the future of Callide B Power Station

27 Oct 2019

No decision has been made to close any of our plant and the final decision regarding the actual closure of Callide B, and in fact any of CS Energy’s power stations, will be made by our shareholder the Queensland Government.

CS Energy recently informed the Australian Energy Market Operator (AEMO) that its forecast closure date for Callide B Power Station is 2028, in accordance with new reporting requirements for large generators to provide advance notice of plant closures.

The Callide Power Station complex, located near Biloela in Central Queensland, comprises two power stations – Callide B, which is a 700 megawatt (MW) power station that was commissioned in 1988, and the newer, 810 MW Callide C power station, which was commissioned in 2001.

Callide B Power Station was commissioned in 1988, with an expected technical life of 40 years. 

It is important to note that 2028 is a forecast closure date due to the technical life of Callide B.

2028 has always been the forecast closure date for Callide B, not 2038 as recently reported in the media.

AEMO has confirmed that CS Energy did not change the retirement date of Callide B and that the plant has a design life of 40 years. In a statement on their website, AEMO has acknowledged that their 2018 Integrated System Plan, published in mid-2018, used a generic NEM-wide coal-fired generation fleet assumed operating life of 50 years.

CS Energy is committed to working with its employees and other key stakeholders to ensure a smooth transition when Callide B is closed.

Background information

CS Energy provided AEMO with the forecast closure year for generators in our portfolio, in accordance with the National Electricity Amendment (Generator three-year notice of closure) Rule 2018 No. 12.

This new rule requires generators to provide AEMO with the expected closure year for their generating units and at least three years’ notice of their intention to permanently close a generating unit.

The new rule was based on a recommendation of the Finkel Review and is designed to help manage the market impacts of the retirement of large coal-fired generators when they reach the end of their technical and economic lives.