The Queensland Government has shortlisted four major energy companies—AGL, ANZA Power, APA Group, and Quinbrook—to progress in its tender process for 400 megawatts (MW) of new gas-fired generation capacity in Central Queensland. Announced on October 19, 2026, this move aims to bolster grid reliability and support the state’s industrial growth by 2032.
The tender, managed by the Queensland Investment Corporation (QIC), sought private sector proposals for additional gas-fired generation. The response significantly exceeded expectations, with proponents collectively identifying over 4 gigawatts (GW) of potential gas-fired capacity across Central Queensland.
Queensland Treasurer and Minister for Energy, David Janetzki, stated, “The response to the tender has exceeded expectations, with proponents identifying more than 4GW of potential gas-fired generation capacity in Central Queensland.”
This initiative underscores the Queensland LNP government’s distinct approach to energy policy, prioritising gas as a critical firming technology to ensure energy security and support a growing economy. The government’s Energy Roadmap, outlined in June 2026, focuses on improving existing energy assets while building new infrastructure, with gas playing a pivotal role in system reliability as the generation mix evolves.
Tender Details and Shortlisted Proponents
Ten qualified proponents initially submitted indicative proposals, with AGL, ANZA Power, APA Group, and Quinbrook now moving to the next phase of the tender process. These companies represent a mix of established gentailers, gas asset owners, and asset managers, some of whom also have significant renewable energy portfolios. For instance, Quinbrook positions itself as renewables-first, while Anza Power also holds solar and battery projects.
The 400 MW target capacity is intended to be operational by 2032. This timeline aligns with long-term grid planning to manage the transition away from coal-fired power and integrate increasing amounts of intermittent renewable energy sources. The government emphasised that competition among multiple credible projects would ensure the best value outcome for Queenslanders.
“Queensland needs affordable, reliable and sustainable energy, and that means making sure we have the right mix of generation in the system at the right time.”
Policy Divergence and Grid Stability
The Queensland government’s decision to specifically tender for gas-fired power diverges from the federal Capacity Investment Scheme (CIS), which typically excludes gas. This highlights varying state-level strategies within Australia’s National Electricity Market (NEM) to achieve energy transition goals while maintaining grid stability.
While other states, such as New South Wales, have also recently announced tenders for firming capacity, their criteria have sometimes explicitly excluded standalone batteries and pumped hydro to secure gas-fired plants for specific reliability challenges. However, Queensland’s direct tender for new gas capacity by 2032 signals a clear commitment to this fuel source for its energy future. The government’s roadmap explicitly states that gas has emerged as a critical technology for system reliability and firming.
Maintaining grid stability is a complex challenge as Australia integrates more variable renewable energy. Investments in transmission infrastructure and diverse generation sources are crucial. Readers interested in managing their household energy consumption amidst these changes can explore resources like Smart Meters & ToU Tariffs: Slash Your 2026 Winter Electricity Bill by $229+ to understand how demand-side management plays a role.
Broader Context: Renewable Investment and Energy Security
This tender comes as new data from the Clean Energy Regulator (CER) indicates record levels of renewable energy investment across Australia. Final Investment Decisions (FID) for large-scale renewable generation reached a new annual record of 5 GW in 2026, surpassing the previous full-year record of 4.9 GW, with three months remaining in the year. Solar FID alone hit a new annual record of 3.5 GW.
Despite this surge in renewable investment, the Queensland government maintains that gas will provide essential firming capacity. This ensures power supply during periods of low renewable output, often referred to as “dunkelflautes,” which are long periods of low wind and solar generation. The focus remains on delivering affordable, reliable, and sustainable energy for all Queenslanders.
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Shortlisted Proponents for Queensland’s 400MW Gas Tender
| Company | Primary Business Focus |
|---|---|
| AGL | Integrated energy company (generation, retail) |
| ANZA Power | Power development (solar, battery projects) |
| APA Group | Gas infrastructure (pipelines, gas-fired generation) |
| Quinbrook | Global asset manager (renewables-first, clean energy) |
Outlook for Queensland’s Energy Mix
The shortlisting of these companies marks a significant step in Queensland’s energy strategy, aiming to balance rapid renewable energy deployment with the need for dispatchable, on-demand power. The successful projects are expected to contribute to the state’s energy security and support its economic development into the next decade. The final selection process and eventual construction will be closely watched by industry observers as Queensland continues to shape its future energy landscape.