A power station in Queensland that runs on coal has experienced a delay in repair, causing electricity supplies and prices in the state to be stretched. This comes at a time when Australia is facing an energy crisis. On March 8th, CS Energy, which is owned by Queensland, announced that two generation units at the Callide C power station would not return to regular operation until next year. The power plant supplies around 30 percent of the state’s electricity needs but has been operating below its capacity since an explosion destroyed one generation unit in May 2021, while another unit went out of service due to a cooling tower failure in October 2022. The delay was caused by the need to build cooling towers on both units. Due to the announcement, the future wholesale electricity prices for April to December in Queensland have jumped by $10-$15 (US$6.5-US$9.9) per megawatt hour. Origin Energy CEO, Frank Calabria, has warned that electricity prices could increase by as high as 20 percent after July 1st, due to a change in the default market offer. The change is expected to affect consumers in New South Wales, Queensland and South Australia.
Electricity prices may increase due to delays in repairing Queensland Power Station.
