3 September 2025 – New analysis by Nexa Advisory shows that Gladstone Power Station is increasingly unable to meet Queensland’s electricity needs, with outages, poor reliability and falling output threatening both household power bills and the state’s heavy industry hub.
Since 2020, Gladstone’s average capacity factor has sunk below 45 per cent – well under the black-coal fleet average of around 55 per cent and is the worst performer across the whole National Electricity Market (NEM).
Across its six units, downtime has totalled an average of 14,800 hours a year – the equivalent of each unit being offline for more than a whole season (14 weeks annually).
Unplanned outage hours have risen 65 per cent since 2020, even with increased planned maintenance.
This unreliable performance directly impacts Queensland consumers. Gladstone’s persistent outages have contributed to price volatility and higher wholesale contract prices.
Gladstone is central to Queensland’s industrial economy. It supplies the Gladstone industrial hub, home to the Boyne Island aluminium smelter (13 per cent of state demand), alumina refineries, LNG plants and cement works – underpinning $6.7 billion in regional economic output and nearly 120 million tonnes of annual port exports.
Nexa’s analysis confirms that – provided new generation, storage and transmission projects are delivered on time – Queensland can close Gladstone without breaching the national Reliability Standard.
Nexa Advisory CEO, Stephanie Bashir said:
“Queensland’s major industrial economy is at risk because of the Gladstone Power Station. An industry which generates $6.7 billion in economic output is relying on a power station that is offline for the equivalent of more than half the time.
“Queensland cannot continue to rely on Gladstone to keep the lights on. Its deteriorating performance threatens both household bills and the competitiveness of the Gladstone industrial hub.
“The state government must set a firm timetable for Gladstone’s closure, ensure timely delivery of the Gladstone Grid Reinforcement, and accelerate approvals for renewable generation and storage. That’s the only way to give industry and consumers the certainty they deserve.
“This is not about turning off coal tomorrow, it’s about being honest about Gladstone’s poor performance and planning for a secure, affordable and cleaner energy system. By acting now, Queensland can protect consumers, support its Olympic commitments, and create certainty for industry and investors.”
See the full media release here: Nexa Advisory – Gladstone performance media release