Delays or Approvals Ahead? QPM’s Isaac Power Station Awaits Final Grid Connection Terms

A Milestone for Isaac Power Station

QPM Energy Limited (ASX – QPM) has announced a pivotal development in the progress of its Isaac Power Station (IPS) project, having executed a Connection Project Delivery Agreement (CPDA) with Powerlink Queensland. This agreement marks a crucial milestone, enabling the 112MW power station to connect to the Moranbah substation, a key step towards bringing the project online.

The CPDA outlines Powerlink’s commitment to undertake necessary construction works at the Moranbah substation ahead of the formal Offer to Connect, as stipulated under the National Electricity Rules. This proactive approach by Powerlink ensures that the infrastructure will be ready to support the IPS’s integration into the grid, smoothing the path to energisation.

Terms and Timelines

The agreement includes a 30-year term for the Generator Connection & Access Agreement, with annual connection charges aligned with QPM’s prior feasibility studies. This alignment provides financial predictability and supports the company’s project finance arrangements. Notably, the CPDA sets a target energisation date of no later than 30 June 2027, signalling a clear timeline for the project’s operational commencement.

QPM’s CEO, David Wrench, emphasised the significance of this agreement, highlighting its role in advancing the IPS development and its expected contribution to flexible generation capacity and network support in the Moranbah region. The collaboration with Powerlink Queensland has been described as expeditious, reflecting a shared commitment to the project’s success.

Looking Ahead

While the CPDA represents a major step forward, the finalisation of the Generator Connection & Access Agreement remains contingent on agreeing technical performance standards with Powerlink and the Australian Energy Market Operator (AEMO), followed by the issuance of the formal Offer to Connect. These remaining steps will be critical in confirming the operational parameters and ensuring regulatory compliance.

For investors and stakeholders, this development not only advances the timeline for the Isaac Power Station but also strengthens confidence in the project’s financial and operational viability. The successful connection to the grid will unlock the potential for the IPS to contribute to Queensland’s energy landscape, particularly in providing flexible generation to support the regional network.