Few places embody the tension of Australia’s energy transition quite like Queensland (QLD). It’s a state built on coal (powering homes, industries, and export terminals for decades), yet it’s now positioning itself as a global player in renewable energy. It’s not simple. QLD’s grid is expanding and holding back, as the state navigates the competing pressures of reliability, cost, and clean energy ambition.
For decades, QLD’s electricity system has been defined by centralised, state-owned coal plants supplying a stable stream of power across vast distances. Today, the map is changing fast. Solar farms now stretch across the Western Downs, rooftop systems dominate suburban skylines, and the CopperString 2.0 transmission project promises to connect the state’s remote north-west to the main grid for the first time.
But progress comes with contradictions. In 2025, QLD extended the operating life of several coal stations into the 2040s, reversing earlier phase-out timelines. At the same time, it unveiled one of the most extensive grid expansion programs in the country, promising to deliver new renewable energy zones, storage hubs, and hydrogen-ready infrastructure. The result is a dual system, with the old and new running side by side, as the state tries to ensure energy security while preparing for a low-carbon future.
In this third part of our Electricity Grids: State by State series, we explore how QLD’s network is adapting to its changing identity: from the nation’s coal powerhouse to a renewable contender, balancing ambition with the realities of scale, cost, and timing.
The current grid
QLD operates the largest electricity system in Australia, stretching from the southern border near New South Wales (NSW) to the far north near Cairns and across to the remote mining communities of Mount Isa. Unlike more compact states, QLD’s grid must cover immense distances, linking coastal cities, inland industries, and regional communities under one of the most geographically dispersed networks in the country.
The system remains dominated by coal. As of 2025, around two-thirds of Queensland’s electricity still comes from coal-fired power stations, mainly concentrated in the south. Plants such as Callide, Gladstone, Stanwell, and Tarong, which form the backbone of the state’s supply, are operated by government-owned corporations such as Stanwell and CS Energy. Under the state’s latest Energy Roadmap, many of these facilities will now stay online into the 2040s, operating in flexible or reserve modes to back up renewables.
Despite this reliance, QLD also leads the nation in solar adoption. More than 1.2 million rooftop systems now feed into the grid, creating record levels of daytime generation that often exceed local demand. At midday on clear days, solar output is so high that it can drive wholesale electricity prices into negative territory, a sign of both the state’s renewable strength and its growing need for smarter energy management.
The grid’s structure is split between two major systems. The main southern network, connected to the National Electricity Market (NEM), supplies most of the population, including Brisbane, the Gold Coast, and the industrial belt around Gladstone and Rockhampton. Further, north and inland, isolated systems serve mining and regional communities using smaller grids powered by gas, diesel, and, increasingly, hybrid renewable setups.
Transmission remains a weak link. The vast distances between generation and demand centres often cause bottlenecks, particularly when renewable output is high. Ageing infrastructure, exposure to cyclones and extreme heat, and the challenge of maintaining reliability across remote lines all add layers of complexity to grid management.
In short, QLD’s energy system is a network of contrasts: heavily coal-powered yet increasingly solar-rich, geographically fragmented but economically vital. It’s a grid that reflects the state itself: big, ambitious, and still working out how to reconcile its past with its future.
Balancing legacy and ambition
QLD’s energy transition is a balancing act between the security of the old system and the promise of the new. The state government owns most of its coal generation assets, which gives it control and caution. While that ownership enables long-term planning, it also makes QLD more hesitant to close plants that still underpin jobs, exports, and industrial supply chains.
In 2025, the QLD Government announced that coal-fired power stations (once slated to retire in the 2030s) would remain operational into the 2040s, either as backup generation or through conversion to flexible, low-load operation. The decision marked a significant policy shift away from earlier phase-out timelines. Officials framed it as a pragmatic step to preserve reliability as renewable infrastructure catches up.
This reflects a deeper challenge: ambition is outpacing capacity. The grid is being asked to integrate record levels of rooftop solar, while major transmission upgrades and storage projects are still years away. The CopperString 2.0 line, now projected to cost nearly $14 billion, has faced repeated delays and budget blowouts. Until that and other projects are complete, large portions of QLD’s renewable potential (particularly in the north and west) remain stranded far from the main grid.
Policy coordination adds another layer of complexity. The state recently repealed its legislated renewable energy targets, replacing them with a “flexible planning framework” designed to adapt to changing conditions. While this offers breathing room for investors, it also signals a step back from firm commitments, leaving uncertainty about how fast the transition will proceed.
Extreme weather adds pressure to both sides of the system. Cyclones, heatwaves, and floods have repeatedly tested transmission infrastructure, prompting calls for more resilient designs and localised energy solutions. Meanwhile, growing industrial demand (especially from Gladstone’s aluminium and hydrogen industries) means the state can’t afford reliability lapses during the transition.
QLD’s challenge is about timing, coordination, and execution. Keeping coal online while scaling renewables is a tightrope walk, one that must balance economic realism with environmental responsibility, without losing public confidence along the way.
From coal to clean energy exporter
Even as coal continues to dominate QLD’s generation mix, the momentum behind renewables is unmistakable. New solar, wind, and storage projects are reshaping its energy map by slowly redrawing where and how electricity is made.
The state has long been known as the country’s rooftop solar capital, and that title has only strengthened. More than one in three homes is generating its own power now.
On bright, cloudless days, rooftop systems supply up to 40% of the state’s total electricity demand, creating a midday oversupply that highlights the promise and the pressure of decentralised generation.
Large-scale solar and wind are expanding too. The Western Downs Green Power Hub, one of the biggest solar farms in the southern hemisphere, has set a new standard for capacity and efficiency. New wind projects near Wandoan, MacIntyre, and Kaban are feeding into regional networks that were once coal-dependent. These projects show the slow transformation from single-source generation to a more diverse energy ecosystem.
The centrepiece of QLD’s grid future remains CopperString 2.0, a 1,100-kilometre transmission line linking Mount Isa and the North West Minerals Province to Townsville and the main grid. It’s the largest electricity infrastructure project in the state’s history and, when complete, will connect remote mining regions rich in solar and wind resources. The project is central to the state’s ambition to become a renewable export hub, powering critical minerals processing and green hydrogen production.
That hydrogen vision is taking shape in hubs at Townsville, Gladstone, and Mackay, where the government and private sector are testing pilot projects aimed at global export markets. The goal is to turn QLD’s abundant sunshine and land into a new economic engine, one where renewable electricity powers heavy industry and fuels international trade.
Yet the pace of progress is uneven. Some projects have slowed amid rising costs, transmission constraints, and investor caution following the rollback of firm renewable targets. The appetite for clean energy is strong, but the supporting infrastructure is still catching up.
Connecting the north and beyond
QLD’s grid is now entering a phase of construction not seen since its postwar industrial boom. The vast size and scattered population of the state mean that every new renewable project depends on stronger links between regions, between technologies, and between past and future energy systems.
At the heart of that effort is CopperString 2.0, the 1,100-kilometre transmission line connecting Mount Isa and the North West Minerals Province to Townsville and the state’s main grid. Long isolated from the NEM, this mining region has relied on expensive local gas generation. Once complete, it will give industries access to cheaper, cleaner electricity and open a corridor for renewable projects across the north-west. However, its scale comes with challenges: the cost has ballooned to nearly $14 billion, making it one of the most expensive transmission projects in the country’s history.
Complementing this is the SuperGrid Blueprint, a long-term plan to weave together renewable energy zones, battery storage, and pumped hydro systems into a single, flexible network. The idea is to ensure that energy can move efficiently from QLD’s sun-rich west and north to its industrial east and south, balancing supply and demand in real time.
Storage is the second pillar. The Kidston Pumped Hydro project in north QLD (built inside a disused gold mine) has recently begun operations, while the much larger Borumba Pumped Hydro near Gympie aims to deliver 2 GW of dispatchable capacity later this decade. Alongside them, a series of large-scale batteries at Wandoan, Tarong, and Greenbank are being added to stabilise the grid during peak periods.
Transmission resilience has also become a design priority. New lines are being built with higher cyclone resistance in the north and temperature-resilient materials in the interior. These aren’t simply upgrades, but they are reinforcements against the extreme weather patterns that now routinely threaten QLD’s power supply.
What it means for the future
QLD’s grid transformation will define how the country balances energy security with decarbonisation. The state has chosen a slower but steadier path, keeping coal and gas reliability anchors while building out the infrastructure needed for large-scale renewables. That reflects the reality of a system that powers homes and businesses and also fuels heavy industry and export terminals that drive the national economy.
If QLD’s SuperGrid and CopperString 2.0 projects deliver on their promise, the payoff will be enormous. The state could shift from a fossil fuel exporter to a renewable energy exporter, supplying clean electricity and green hydrogen to domestic and international markets. Regional towns that once relied on coal could become hubs for transmission, battery storage, and critical minerals processing, industries that are central to the next energy era.
For the grid itself, the goal is flexibility. The future QLD network will need to manage vast swings in generation, from midday solar surpluses to evening demand spikes, while ensuring resilience against extreme weather. Technologies like pumped hydro, large-scale batteries, and dynamic demand management will play a crucial role in keeping the system balanced and affordable.
Yet the risks remain real. Extending coal operations buys time, but it also locks in emissions and can discourage private investment in renewables. Rising project costs and shifting policies risk slowing the momentum that once made QLD a leader in clean energy uptake. Without consistent policy direction, developers and households alike face uncertainty over when and how the next wave of grid reform will arrive.
Still, QLD’s hybrid model may prove instructive. Rather than pursuing a rapid break from the past, the state is attempting to evolve its grid in stages, maintaining reliability while gradually scaling new energy industries. It’s a long game, one that seeks to protect jobs, attract investment, and keep the lights on while rewriting the rules of energy generation in one of Australia’s most resource-rich states.
What it means for homeowners
The grid overhaul will shape how and when electricity is used, and how much it costs. In the short term, prices may fluctuate as infrastructure spending and coal extensions ripple through the market, but as more solar, storage, and interconnection projects come online, costs should stabilise. The state’s strong solar uptake already gives homeowners an advantage, and the next wave of growth will come from batteries and smart systems that store excess power and sell it back during peak demand.
Programs like community batteries, demand-response trials, and evolving feed-in tariffs (FiTs) will make the home a more active player in the grid. While the transition may feel gradual, each upgrade pushes QLD closer to a cleaner, more self-sufficient energy future.
Queensland’s energy story is one of scale and pragmatism — a state determined to secure its power supply while building the foundations of a cleaner economy. It remains Australia’s industrial engine, but the grid now reflects a dual identity: coal for stability, renewables for growth. The coming decade will test whether Queensland can complete this balancing act without losing pace or purpose.
In the next part of our Electricity Grids: State by State series, we’ll head to South Australia, where the lessons are very different. There, renewables already dominate generation, and the challenge is no longer how to build them — but how to keep a fully renewable grid stable, affordable, and secure.
Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.
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