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

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