Coal Power

Coal-fired power stations in Australia explained

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It wouldn’t be farfetched to say that most Australians would have stumbled across the term ‘coal-fired power stations’ at least once in their life. Whether it’s listening to a fiery discussion on talkback radio or a neighbour giving their two cents on the topic, coal — and how it’s used — usually comes with negative connotations. But just how much do we know about this controversial fossil fuel, and what is its main purpose in Australia?

While there are so many initiatives to produce energy from renewable sources, coal is still largely relied on for electricity generation in Australia. In this guide, we’ll cover the key questions about coal-fired power stations, including the role these plants play in catering to Australia’s energy needs, as well as how they work and where they are located.

What is a coal-fired power station?

A coal-fired power station is an energy plant that burns coal — a fossil fuel — to generate electricity that supplies power to homes and businesses. Thermal coal in Australia is either black or brown coal, both of which are flammable sedimentary rocks formed over millions of years from decomposed vegetation that’s been compressed under layers of sand and sediment.

There are a few key energies stored in coal, and when successfully converted, they can create thermal energy, mechanical energy and electrical energy. Australia’s electricity generation relies heavily on coal-fired power stations. In fact, coal-fired power stations supplied about 47 per cent of the country’s power needs in 2022, according to the Department of Climate Change, Energy, the Environment and Water.

How do coal-fired power stations work?

In a nutshell, coal-fired electricity generation is achieved through a complex process:

  1. Black or brown coal is pulverised into a powder that’s burned in a furnace
  2. The heat generated from this turns water fed into the power station into steam, which then passes through turbines at high pressure
  3. The resulting steam helps move and spin the turbines that are connected to an electrical generator
  4. Inside the generator are magnets that turn copper wire coils, creating an electrical current that generates electricity.

How long do coal-fired power stations last?

The average lifespan of a coal-powered plant is 29 years although some power stations are designed to last between 40 and 50 years, according to Energy Networks Australia. Most coal power plants have an expected closure date, however they can cease operating earlier due to a variety of reasons, such as being replaced by renewable energy generation or a reduction in performance that’s likely to increase electricity prices and power outages.

How many coal-fired power stations are in Australia?

There are currently 20 coal-fired power stations operating across Australia according to the Open Infrastructure Map. Where a group has multiple stations, they have been combined into one. These plants are located in New South Wales, Victoria, Queensland and Western Australia. Here is a list of the coal-fired power plants currently in operation:

 

State Power Station Capacity (MW)
VIC Loy Yang A & B 3,310
NSW Eraring 2,880
NSW Bayswater 2,640
QLD Gladstone 1,680
QLD Callide A, B & C 1,540
QLD Stanwell 1,460
VIC Yallourn 1,450
QLD Tarong 1,400
NSW Mt Piper 1,320
NSW Vales Point 1,320
WA Muja 1,094
QLD Milmerran 852
QLD Kogan Creek 744
QLD Tarong North 450
WA Bluewaters 416
WA Collie 340
WA Worsley 114

Source: Open Infrastructure Map

Where are the coal-fired power plants in Australia?

The map below shows some of the main coal-fired power stations in Australia. Keep in mind this map is not to scale and is designed to be a rough guide only. As you can see, most coal power plants are located along the east coast of Australia.

Map of coal fired power stations in Australia

When was the first coal-fired power station built?

The first coal power plant in Australia is credited to the Yallourn Power station in Victoria. Located in the Latrobe Valley, the origins of the Yallourn Power Station date back to 1890 where operations began at the Yallourn North Open Cut — a brown coal mine. Over the years, the area has consisted of many sites including Yallourn A, B, C, D, E and now, Station W — which is set to close in 2028.

What is the biggest power station in Australia?

The largest power station in Australia by capacity is Loy Yang — located in Traralgon, Victoria — which consists of Loy Yang A and Loy Yang B. Both sites generate around 3,3100MW, which powers around 30% of Victoria’s energy requirements, according to AGL. Situated next to a coal mine, Loy Yang A is owned by AGL, while Loy Yang B is owned by Chow Tai Fook Enterprises — owner of Alinta Energy.

Loy Yang’s primary fuel source is brown coal. Both plants — A and B — are due to cease operating in 2035. The power stations’ closure date coincides with the Victorian government’s plans to be completely carbon neutral by 2050.

Top 10 countries for coal capacity in the world

When it comes to coal on a global scale, Australia ranks highly. Below is a list of the top 10 nations by yearly coal production:

  1. China
  2. India
  3. United States of America
  4. Australia
  5. Indonesia
  6. Russia
  7. South Africa
  8. Germany
  9. Poland
  10. Kazakhstan.

Pros and cons of coal-fired power plants

There are numerous pros and cons for coal and how it helps power Australia. Most of the advantages of coal-fired power stations revolve around the accessibility of coal and how it’s cost-effective when compared to mining other resources, while the disadvantages are centred around its negative impacts on the environment.

Pros of coal power Cons of coal power
No global shortages of coal expected in the medium term Not a renewable source of energy and relies on a finite resource
Australia is a major exporter of coal Stations emit carbon dioxide
Most energy infrastructure supports coal Ageing fleet of power stations
Generally cheaper to run than renewables (although this is expected to change as renewables become more cost effective over time) Mining of coal can harm natural habitats

Is coal-fired power being phased out in Australia?

To cut a long story short, coal power plants still play a vital role in Australia’s electricity generation capabilities, with it still being the major resource behind keeping our nation’s lights on. That being said, it’s not to say the little black rock isn’t on borrowed time, especially as Australia looks to transform its energy system and reach net-zero emissions by 2050.

Given there is continuous research and investment into green energy production, it’s safe to argue that coal-fired power stations may cease to exist one day. With its future hanging in the balance, there’s no doubt this fossil fuel will remain a talking point for many years to come, particularly as Australia, as well as many other world economies, shift to a more sustainable future.

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Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.


Image credits: Bilanol/Shutterstock.com, Wikipedia Commons

Monika Gudova
Energy Contributor
Monika Gudova has grown her expertise in Australia's retail energy sector over several years at Canstar Blue and elsewhere in the comparison industry. She holds a Bachelor of Journalism and Bachelor of Communication and Media Studies from the University of Wollongong and covers a range of topics.

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