QLD MARKET UPDATe
Electricity Prices
In October 2025, we observed that Queensland’s electricity market experienced moderate volatility, influenced by spring weather conditions, fluctuating renewable output, and ongoing local network constraints. While wholesale electricity prices generally eased slightly from winter peaks, evening periods remained sensitive to the drop-off in solar generation. Coal and gas-fired power stations continued to provide the backbone of supply, while rooftop and utility-scale solar moderated daytime prices.​​​​​
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Generation Mix
Queensland’s electricity generation came from coal, gas, wind, solar, and hydro, with renewable sources contributing approximately 27–32% of total supply. Rooftop solar remained a dominant factor in daytime generation, while variable wind output and gas-fired plants filled gaps during lower renewable periods.
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Key factors shaping supply and prices in October included:
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Gladstone Power Station’s Unit 4 remained offline, continuing from emergency condenser repairs, limiting coal-fired generation and tightening supply.
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Local network constraints during high-demand periods contributed to price spikes, particularly in southern and central Queensland.
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Strong rooftop solar during mid-day hours helped suppress wholesale prices, but evening peaks increased sharply once solar output declined.
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Variable wind generation across southern Queensland created intermittent shortfalls, requiring more reliance on gas-fired generation.
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Battery storage support continued to grow, with assets like the Borumba Battery storing excess solar during the day and discharging during peak demand, helping smooth price volatility.
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Futures Pricing
We observed that forward electricity prices for Queensland in October 2025 showed slightly more stability than September, with moderate volatility:
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Base month futures shifted by approximately ±7–10%, reflecting generally balanced market conditions and seasonal solar generation.
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Evening peak contracts remained higher, driven by solar drop-off, high evening demand, and local network congestion.
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Overall, futures suggest a market that is steadying, though exposed to the usual spring variability and occasional thermal outages.
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what it means for your business
Energy costs in Queensland remain sensitive to evening demand and renewable variability. Midday solar continues to provide relief, but sharp price spikes can occur in the evenings when solar output falls and network constraints tighten.
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With ongoing coal plant outages and reliance on gas-fired generation, we recognise that large or energy-intensive businesses may face exposure to spot price fluctuations. With the market stabilising slightly in October, we see this as a good opportunity to review your energy strategy, manage costs, and plan for the summer months.
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If your business does not yet have a strategy in place, we are here to help. Contact us for a free bill check or to discuss a tailored energy procurement plan.
QLD ELECTRICITY FUTURE PRICING CHARt​
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On 10 October 2025, the Queensland Government unveiled its Energy Roadmap 2025, marking a significant departure from the previous administration's plans. The new roadmap prioritises affordable, reliable, and sustainable energy, emphasising a balanced approach to energy generation and infrastructure development.
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Key highlights include:
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Extended Operation of Coal-Fired Power Stations: The government has decided to extend the operational life of state-owned coal-fired power stations, with some facilities now expected to operate until at least 2046. This move replaces the earlier commitment to phase out coal by 2035.
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Doubling Gas Generation Capacity: The roadmap outlines plans to increase gas-fired generation capacity from 3.5 GW to up to 8.3 GW by 2035, recognizing the critical role of gas in ensuring system reliability and supporting the transition to renewable energy sources.
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Investment in Renewable Energy and Storage: A commitment of $400 million has been made to encourage private investment in renewable energy projects and storage solutions, aiming to diversify the energy mix and enhance grid stability.
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Revised Transmission Infrastructure Plans: The roadmap includes adjustments to the CopperString transmission project to manage costs effectively, with a revised delivery plan aiming for completion by 2032.
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WHAT this means for businesses
The strategic shift outlined in the Energy Roadmap 2025 presents both opportunities and challenges for businesses:
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Energy Pricing Stability: The extended operation of coal-fired power stations and increased gas generation capacity may contribute to more stable energy prices, reducing the risk of price volatility associated with rapid transitions.
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Opportunities in Renewable Energy Projects: The commitment to renewable energy investment opens avenues for businesses to engage in new projects, potentially offering long-term energy contracts and participation in emerging energy markets.
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Considerations for Energy Procurement Strategies: Businesses may need to reassess their energy procurement strategies to align with the evolving energy landscape, considering factors such as energy source diversification, contract terms, and potential incentives for renewable energy adoption.
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For a comprehensive understanding of the Energy Roadmap 2025 and its potential impact on your business, we recommend reviewing the full policy document and consulting with energy experts to tailor your energy strategy accordingly.
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Brigalow Peaking Power Plant Boosts Queensland Reliability
On 23 October 2025, the Queensland government announced a 10-year gas supply agreement between CS Energy and Senex Energy to support the development of the Brigalow Peaking Power Plant near Chinchilla in the Western Downs. This facility, slated to commence operations in 2027, will be Queensland’s first new gas-fired power station in over a decade.
The plant is designed to provide 400 megawatts of dispatchable electricity, capable of reaching full output within five minutes, supplying reliable power to more than 150,000 Queensland homes during peak demand periods. Senex Energy will supply up to 58.4 petajoules of natural gas from its Atlas development in the Surat Basin to fuel the plant.
The Queensland government has committed $479 million in the 2025–26 State Budget for CS Energy to develop the Brigalow facility, aligning with its Energy Roadmap strategy to deliver affordable, reliable, and sustainable power for households, businesses, and industry across Queensland.
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WHAT this means for businesses
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Enhanced Energy Reliability: The introduction of the Brigalow Peaking Power Plant will bolster grid stability, providing businesses with more reliable electricity supply during peak demand periods.
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Potential for Lower Energy Costs: The development of new gas-fired generation capacity aims to place downward pressure on energy prices, potentially leading to cost savings for energy-intensive businesses.
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Opportunities for Collaboration: With the Queensland government and Senex Energy investing in new energy infrastructure, there may be opportunities for businesses to engage in partnerships or collaborations related to energy supply, storage, or efficiency projects.
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Alignment with Sustainability Goals: The development of dispatchable gas-fired generation aligns with Queensland's transition towards a balanced energy mix, supporting businesses in meeting their sustainability and emissions reduction targets.
Social Licence in Renewable Energy Toolkit Launched
The Queensland Government has introduced the Social Licence in Renewable Energy Toolkit, a resource designed to assist local councils in navigating renewable energy projects. This toolkit includes tools, templates, and checklists to help councils engage with renewable energy developers and deliver lasting benefits for regional host communities.
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WHAT this means for businesses
For large energy users, the Social Licence in Renewable Energy Toolkit mainly affects how quickly and smoothly renewable projects can be developed and connected to the grid, which in turn influences energy pricing and availability. Implications include:
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Faster Project Approvals: By helping councils engage effectively with communities, the toolkit can reduce delays in renewable energy project approvals. This means large energy users may gain access to new renewable supply sooner.
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Improved Contract Opportunities: Quicker approvals and smoother community engagement can lead to more competitive Power Purchase Agreements (PPAs) and access to large-scale renewable projects.
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Reduced Risk of Community Opposition: Projects are less likely to face disputes or delays, which helps large users lock in renewable energy supply at predictable prices.
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Strategic Planning: Large energy users can better plan renewable procurement and infrastructure investment, aligning their energy strategy with upcoming local projects supported by the toolkit.
