Queensland launches gas-fired generation capacity tender

Gas flame from industrial chimney against cloudy sky (gas deals)
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While the New South Wales Government has announced the biggest renewables tender in the state’s history, Queensland has announced a new tender seeking private sector proposals to to deliver 400MW of new gas-fired generation capacity in Central Queensland by 2032.

Announced by Queensland Investment Corporation (QIC), the Central Queensland Gas Power Tender invites project proposals for new, utility-scale gas fired generation as part of the Queensland Energy Roadmap.

Related article: Queensland announces plans for new gas-fired power plant

QIC head of global infrastructure Ross Israel said proposals were being sought for projects designed to operate flexibly to support peak demand and enhance system resilience.

“The tender will be conducted through a staged evaluation process, with proponents assessed on their ability to build and deliver the required new gas-fired generation capacity into the market, project readiness, capability, track record, and the overall value they can provide to Queensland electricity consumers and the state,” he said.

“Proposals will also be considered which have innovative approaches to integrate complementary technologies or infrastructure solutions, provided they align with the key requirement of delivering 400MW of new gas-fired generation capacity.”

The tender process is due to be finalised by the end of 2026 for 400MW of additional gas-fired generation in Central Queensland to be operational by 2032.

Queensland is forecast to have up to 4.1GW of gas-fired generation capacity by 2030, increasing to between 6.1 and 8.3GW by 2035.

In October last year, the Queensland Government announced it would deliver the state’s first new gas-fired power station in more than a decade, with CS Energy and Senex Energy entering into 10-year gas supply agreement.

Related article: Queensland Govt extends coal plants in Energy Roadmap

State-owned CS Energy will develop the 400MW Brigalow Peaking Power Plant next to the coal-fired Kogan Creek Power Station in Queensland’s Western Downs.

Forecasts place development costs of the fossil fuel project in the vicinity of $479 million, with operationality planned for 2028.

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