Coal performance in the NEM: Callide Power Station
Nexa Advisory has analysed the performance of coal-fired power stations across the National Electricity Market (NEM). This report is part of a series of case studies which examines the reliability and performance of each of these generators as they approach the end of their technical lives.
This report analyses the performance of the Callide Power Station in Queensland between 2012 to 2024 and was completed prior to the most recent incident at the plant (April 2025).
It is clear from the analysis in this report that the 700 MW Callide B and 844 MW Callide C should not be relied on to provide electricity for Queensland.
Callide B and Callide C have consistently faced age-related operational challenges should not be relied on to provide reliable electricity for Queensland. This is detailed below:
Callide B Power Station
- Since 2020, the average total downtime across its two units has been around 4,000 hours – equivalent to each unit being offline for 12 weeks a year
- Annual unplanned outage rate spiked to 70% in 2014 following coal supply issues – and 42% in 2024 due to ongoing unplanned outages and maintenance
- Callide B has emitted 3.6 Mt CO2 on average each year since 2020. At this rate, it will emit a further 10.5 Mt CO2 until closure – valued conservatively at $342.3 million
- Closure of Callide B would contribute in the order of 5% of the progress still required to meet Queensland’s 75% 2035 target
Callide C Power Station
- Callide C has faced significant outages since the catastrophic failure of one of its units in 2021, and the subsequent failure of the other unit in 2022. These remained offline until August and April 2024 respectively
- Even before these events, its two units experienced an average total downtime of 2,000 hours annually between 2012 and 2020 – equivalent to about six weeks per unit each year
- Callide C averaged 5 Mt CO2 of annual emissions until 2020, prior to its major incident in 2021. This is valued at $163 million annually
- If Callide C returns to its previous operating levels, this will counteract any emissions reduction associated with the closure of Callide B in 2028
Recommendations
Nexa Advisory offers the Queensland Government several recommendations on the way forward:
- Commit to the on-time closure of Callide B in 2028 and set a date for the retirement of Callide C to give a clear signal to investors in and developers of the required renewable replacement capacity and storage.
- Lean into new capacity build: Maintain the current rate of renewable energy development and deliver the 18.5GW of approved projects currently in the pipeline.
- Accelerate near-term approvals: Expedite planning approvals for projects deemed to be critical for the state’s energy transition.
- Enable timely transmission delivery: The Queensland Government and Powerlink must ensure the Gladstone Grid Reinforcement is delivered efficiently and on schedule (optimally by 2030-31).
- Prioritise and accelerate smaller modular and deep energy storage projects as a replacement for the cancelled Pioneer-Burdekin project to maintain reliability.
- Leverage the untapped potential of consumer energy solutions for homes and businesses to help meet Queensland’s energy needs, directly reduce consumer bills and also support achievement of emissions commitments.
Read our report here: Nexa Advisory – Callide power station
