QIC launches tender process to boost energy reliability

QIC has launched a competitive tender process for 400MW of new gas-fired generation capacity in Central Queensland as the state pushes to bolster energy reliability amid the transition toward renewables.

The tender, announced under the Queensland Energy Roadmap, seeks private sector proposals for utility scale gas-fired generation projects capable of supporting peak demand and firming intermittent renewable energy supply by 2032.

QIC said the process follows extensive market sounding activity conducted across late 2025 and early 2026, which attracted interest from around 40 participants.

QIC head of global infrastructure Ross Israel said the tender is focused on securing flexible generation capacity capable of supporting system resilience as renewable penetration increasing across the electricity network.

"The tender will be conducted through a staged evaluation process, with proponents assessed on their ability to build and deliver the required new gas fired generation capacity into the market, project readiness, capability, track record, and the overall value they can provide to Queensland electricity consumers and the state," said Israel.

Proposals incorporating complementary technologies or broader infrastructure solutions will also be considered, provided they align with the core requirements of delivering 400MW of additional gas-fired capacity.

The initiative reflects the increasingly prominent role gas generation is expected to play in maintaining grid stability during Australia's energy transition, particularly in industrial regions such as Central Queensland where energy demand is forecast to grow.

According to QIC, Queensland produced nearly $27 billion of gas last year, directly supporting around 9000 local jobs.

Forecast cited in the tender documentation indicate Queensland could have up to 4.1-gigawatts of gas-fired generation capacity by 2030, increasing to between 6.1 and 8.3-gigawatts by 2035.

The additional generation capacity is expected to support both energy security and future industrial demand, particularly as coal-fired power stations progressively retire and renewable energy projects expand.

The tender process is scheduled to conclude by the end of 2026, with successful projects expected to be operational by 2032.