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AAP
AAP
Business
Marty Silk

Stricken Qld power plant's repair delayed

The failure of Queensland's Callide C power station hit more than 470,000 homes and businesses. (AAP)

It could take more than a year to repair a Queensland coal-fired power plant which supplies 16 per cent of the state's electricity.

The Callide C power station catastrophically failed after an explosion in its turbine hall on May 25.

The resulting outage hit more than 470,000 homes and businesses between the NSW border and Cape York.

State-owned generator CS Energy, which runs and maintains the plant in a joint venture with InterGen, forecast the damaged C4 turbine to return to operation by June 2022.

CEO Andrew Bills has said it is CS Energy's "intenion to rebuild Unit C4".

But that timeline is in doubt after the 2021/22 Queensland state budget did not allocate enough funds to repair the damaged turbine.

About $43.5 million will be invested in overhauls, enhancements and refurbishments of the Callide B power station.

There is another $10.1 million for capital works at the Callide C in 2021/22, but the repair bill for the C4 turbine will reportedly be as much as $200 million.

Opposition energy spokesman Pat Weir says the budget indicates the government is banking on an insurance claim to fix the turbine.

"There's a chance that it won't be successful," he told AAP.

"The neighbouring turbine was also damaged, but the bottom line on that is not appearing in these budget papers, so I've got some questions about Callide B as a whole."

AAP has contacted Treasury, the Department of Energy and Public Works and CS Energy for comment.

Mr Weir said the insurance claim will set back the repair deadline because CS Energy and InterGen have different insurers.

"I understand it's already been a few hiccups," he said.

The budget papers also said it was too early to ascertain the long-term impact of C4's outage on CS Energy's profitability.

"The recent incident at Callide Power Station is expected to reduce returns to government from CS Energy in 2020-21, although it is too early to ascertain any longer-term implications," the budget said.

Built in 2001, Callide C is one of the newest electricity generators in the state.

The Greens have proposed decommissioning the entire plant and using the estimated $200 million in repair funding for a battery and to retrain the 260 workers.

Greens MP Michael Berkman said the state government was talking big on renewable energy in the budget, but needed to back it up with funding and action.

"We need to see a genuine transition plan for workers depending on those industries, otherwise Queensland's economic prospects and achieving our climate targets is jeopardised," he said.

"If they go ahead and spend hundreds of millions of dollars on a blown-up, coal-fired power station, then they lose any credibility they might have gained today."

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