Australia’s ageing fleet of coal-fired power stations are outdated, unreliable and must be replaced soon, according to new research commissioned by the Climate Council.
With over 60% of our coal-fired generators being more than 40 years old and prone to breaking down when we need power the most, the Lights Out: Ageing Coal and Summer Blackouts report highlights the urgent need for more renewables backed by energy storage to secure Australia’s energy future.
Climate Councillor and energy expert Greg Bourne said, “Clapped-out coal clunkers are making it harder to keep the lights on. A coal generator’s availability to produce electricity begins to decline from 40 years old, decreasing from 81% to 65% on average.
“More than half of our coal fleet was built in the 1980s. As they age, their reliability drops dramatically. In states like New South Wales and Victoria, where coal stations are the oldest, the risks are particularly acute.
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“Coal’s worsening reliability is particularly concerning during peak summer periods, when Australians rely on power to keep cool. Recent summers have exposed coal’s fragility, with unplanned outages pushing our energy system to the brink and driving severe price spikes that hit household budgets hard.
“Four of the most severe price spikes in the past seven years were driven by unplanned coal outages.”
Climate Council CEO Amanda McKenzie said Australia’s reliance on coal is delaying progress on reliable, clean power.
“Coal-fired power stations are Australia’s biggest energy liability—polluting, unreliable, and fueling unnatural disasters like bushfires and heatwaves. The writing is on the wall for coal: it’s on the way out, and we need to replace it fast with renewables backed by storage—for our kids’ futures and a safer climate,” she said.
“Batteries have already proven their worth, stepping in to keep the lights on during critical moments. During NSW’s November 2024 heatwaves, when coal outages left the grid exposed, batteries delivered up to 200MW of electricity—enough to power over 150,000 reverse-cycle air conditioners.”
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Key insights from the report
- A coal generator’s availability to produce electricity begins to decline from 40 years old, decreasing from 81% to 65% on average.
- Over the past four years, coal power has been significantly less available during periods of increased power outage risk than under typical conditions.
- The majority of recent power outage risk conditions have occurred in New South Wales and Queensland—the states most dependent on coal generators.
- Coal outages have played the largest role in power outage risk conditions in New South Wales and Victoria—the states with the oldest coal generators.
- Four of the most severe price spikes in the past seven years were driven by unplanned coal outages.
- During the November 2024 NSW heatwaves, one third of the state’s coal power units were offline for repairs—prompting AEMO to issue blackout warnings and put big batteries on standby.
