Coal

Coal generator owner fined $9 million after explosion that caused widespread blackouts

Published by

A power company has been fined $9 million for allowing a “catastrophic” generator explosion that caused widespread blackouts due to a lack of backup systems.

An explosion and fire at the Callide coal-fired power station in central Queensland caused extensive damage to its Callide C turbine hall on May 25, 2021.

The subsequent loss of electricity generation overloaded interstate powerlines as the grid tried to match demand, causing a blackout to half a million homes and businesses in Queensland and NSW.

In February 2024, the Australian Energy Regulator (AER) took Callide Power Trading Pty Ltd to Federal Court alleging it had failed to comply with its performance standards for Callide C.

Federal Court Justice Sarah Derrington on Tuesday found serious procedural breacheshad caused “catastrophic failure and destruction” to major infrastructure.

“The consequences included the destruction of valuable equipment, the potential for loss of life, loss of power to the grid, and significant, long-term and wide-ranging impacts on the National Electricity Market,” she said.

Callide Power Trading Pty Ltd is an intermediary in a joint venture between Queensland government-owned CS Energy and private company IG Power, which is now under administration.

Justice Derrington found Callide Power Trading had contravened the National Electricity Rules by failing to maintain redundancy or protection systems when replacing an industrial battery charger.

One of the two generators at Callide C used a battery to power the unit’s protection, control and monitoring systems, providing supply to backup equipment such as the emergency lubrication oil pumps.

A cascading series of failures during a procedure to replace the battery charger caused the generator to receive a reverse flow of power that led to the turbine spinning like a motor.

While the turbine was spinning under external power, its isolated protection systems had no source of electricity, leading to an explosion through a lack of emergency lubrication and control systems. 

“This impact caused the rotor shaft to tear apart at nine locations. A piece weighing more than two tonnes was thrown five metres across the floor of the turbine hall,” Justice Derrington said.

Callide Power Trading was ordered to pay a civil penalty of $9 million and $150,000 in costs.

AAP

Share
Published by

Recent Posts

Don’t let the data centre gold rush become an excuse to pollute

National rules should ensure new data centres bring new clean power with them, rather than…

10 August 2026

Independent panel approves Sydney big battery sent for review by objectors from tiny towns 800 km away

Major battery proposed for centre of Sydney gets development approval from independent panel, after being…

10 August 2026

Wind turbine blades start making 400 km journey from port to project site

Wind turbine blades bound for the only wind farm currently under construction in New South…

10 August 2026

Vanadium: The silvery data centre storage metal that you may never have heard of

Vanadium batteries could be the answer to the expanding, energy-hungry artificial intelligence infrastructure sector, with…

9 August 2026

Bowen launches review of emission caps and credits for Australia’s biggest carbon polluters

Policy review will investigate settings for Australia's 2030 and 2035 emissions reduction targets.

7 August 2026

Energy Insiders Podcast: Will data centres make or break wind?

Kane Thornton has moved from the peak renewables body to data centres, now the presumed…

7 August 2026