Massive state-owned wind farms, big batteries and long duration energy storage are among the big winners in Queensland Labor’s latest budget, with $7 billion going to pumped hydro and just under $5.5 billion to the various renewable energy projects of the state’s six government-owned utilities.
In what it describes as “the most significant investment ever” in the state’s publicly owned electricity system, the Palaszczuk government has allocated $19 billion over four years to ensure the state meets its renewable energy targets and builds enough new capacity to replace coal.
Pumped hydro emerges as perhaps the biggest budget winner, with a total of $7 billion set aside for state-owned projects, including $6 billion for the Borumba project over the construction period and $1 billion for the Pioneer-Burdekin project.
This year, Queensland Hydro will invest $183.7 million to progress the 2GW Borumba Pumped Hydro Energy Storage project near Gympie, and will also undertake a detailed feasibility study into the Pioneer-Burdekin Pumped Hydro Energy Storage project west of Mackay.
For the 2023-24 financial year, the budget has given $212.6 million to CleanCo to advance renewables projects in Central Queensland and the 250MW, two hour (500MWh) Swanbank Battery.
Another $673 million is going to Stanwell to develop the Wambo and Tarong West wind farms – both 500MW – as well as large-scale batteries, and $312.1 million for CS Energy to invest in Central Queensland wind farms and large-scale batteries.
Transmission company Powerlink will invest $594 million in 2023-24 to kick-start the CopperString 2032 high voltage link between Townsville and Mount Isa that aims to unlock valuable new critical minerals projects and accommodate more renewables.
Powerlink will also invest $193.8 million to support the connection of major renewable projects to the grid, including the proposed 2GW Borumba pumped hydro energy storage and the massive 1GW MacIntyre Wind Precinct south-west of Warwick.
“This year’s budget empowers our publicly owned energy entities to drive Queensland forward toward more affordable and more reliable renewable energy,” said state premier Annastacia Palaszczuk.
“It represents the most significant investment ever in Queensland’s publicly owned electricity system and will help us power Queensland with 70% renewable energy by 2032 and 80% by 2035,” she said.
Despite the big numbers, Queensland will still have the smallest share of renewables in Australia even with those targets. Victoria aims for 95 per cent renewables by 2035, and NSW expects all its coal fired generators will have closed by that time.
Queensland currently sources just 22 per cent of its power needs from renewables, although it is seeking to accelerate that change.
“This year’s capital program positions our publicly owned energy entities to lead the clean energy era and support thousands of jobs,” the premier said.
“It empowers them to work with industry to seize every opportunity from the renewable energy boom to create skilled jobs and power new mining and manufacturing industries,” Palaszczuk says.
“The investments made in this Budget demonstrate how only Labor can sustain a strong economy and jobs in regional Queensland, as well as take real action on climate at the same time,” said state energy minister Mick de Brenni.
“Whether it’s in hydrogen, batteries, wind, solar, hydro, traditional generation, transmission, distribution or most importantly Queenslanders themselves, this Budget invests to ensure the Plan delivers on our target of 70% renewable energy by 2032.”
On the cost of living front, the government has set aside $1.483 billion to splash on electricity bill support in what will be a tough year for Queensland households and small businesses. A disappointingly small $70 million has been allocated to home and business energy upgrades.
In a separate statement, de Brenni also alludes to an investment in “conceptual and applied research” with universities and consumer advocacy groups “to identify and design solutions to facilitate the roll out of solar for renters.”
