Queensland has announced a $62 billion clean energy plan, including what will be the world's biggest pumped hydro storage facility.
The announcement was made by Queensland Premier Annastacia Palaszczuk in her State of the State speech today in which she outlined the 10-year energy plan.
Solar and wind will supply power, but hydro storage technology is the driving force of the scheme.
The government says the planned "SuperGrid" will provided eight times more renewable energy than is currently available.
It is a complex plan, but the goal is simple: for 80 per cent of Queensland's power to come from renewable sources by 2035.
The government says a Renewable Transformation Bill will be prepared next year to legislate the renewable energy targets.
What do we know about the hydro projects?
They will be known as Pioneer-Burdekin Pumped Hydro facility, in Pioneer Creek west of Mackay, is set to be the largest hydro storage facility in the world.
The previously announced Borumba Pumped Hydro facility will also be established in south-east Queensland west of Gympie.
Premier Annastacia Palaszczuk said the two projects will give Queensland the most hydro storage of any state in Australia.
The Borumba facility will be able to store two gigawatts of power at all times – enough to provide power for 2 million homes — but is dwarfed by the Pioneer-Burdekin facility which will be the largest hydro storage facility in the world.
The facility in Pioneer Creek will store five gigawatts of 24-hour storage and is two and half times the size of Snowy 2.0
The premier referred to it as "the battery of the north".
The Borumba facility will be completed by 2030 and stage one of Pioneer-Burdekin is estimated to be finished by 2032 and completed in 2035.
Hydrogen is the driving force of the Queensland government's plan, with solar and wind farms also providing power for the new grid.
What are the other big announcements?
Other major projects that will supply power to the grid, some of which have already been announced, include:
- The Tarong West wind farm near Toowoomba which was announced on Monday
- The Banana Range Wind Farm near Biloela
- The Boulder Creek Wind Farm near Mount Morgan, south of Rockhampton
- A new battery at Swanbank power station in Ipswich
- A new hydrogen-ready gas peaking power station at Kogan Creek near Chinchilla in the Western Downs
Planning maps released by the government show dozens of solar and a handful of wind projects that are yet to be formally announced — including clusters of power sources grouped around the storage facilities.
Who's paying?
The government says the plan will be funded between the public and private sectors.
So far $6 billion has already been committed by the Queensland government, including a $4 billion "down payment".
A government spokesman says, in total, they expect to spend $17 billion over 13 years, secure $17 billion from either the private sector or the federal government, and $28 billion in investment to come from the government-owned corporations.
Deputy Premier Steven Miles said his government hoped the "SuperGrid" would be federally funded, using money earmarked as part of Labor’s pre-election commitment to upgrade the national energy grid.
"We'll be hoping that Anthony Albanese uses some of that money they set aside for that transmission upgrade to invest in this plan. We think this plan makes the most sense," he said.
Premier Annastacia Palaszczuk said Prime Minister Anthony Albanese has indicated his support, but federal funding is yet to be locked in.
"I've had a preliminary discussion with the Prime Minister, he is open to this plan and this idea," she said.
"All the detailed business cases will happen now.
"In terms of the borrowings we will need from our government-owned corporations, we have had detailed Queensland Treasury Corporation analysis that says that it will not affect our credit rating.
"It will still mean that our net debt is lower than New South Wales or Victoria."
The Energy Minister will release comprehensive modelling on the new energy system soon, she said.
What is the 'SuperGrid'?
According to the government, the "SuperGrid" is "all the elements in the electricity system, including poles, wires, solar, wind and storage".
The plan is for those elements to provide a grand total of 25 gigawatts of "large scale wind and solar [power]" by 2035.
What are the new targets?
Queensland had previously set a 50 per cent renewables target by 2030.
As of today, the new goal is 70 per cent renewable energy by 2032 and 80 per cent by 2035.
The premier also said the state would reduce its electricity sector emissions by 50 per cent from 2005 levels by 2030 and 90 per cent by 2035-36.
How many jobs will this create?
The premier says the plan it will generate 64,000 clean energy jobs "including new skilled direct jobs to build the SuperGrid", and 36,000 jobs in "green growth opportunities".
The government plans to establish the Energy Workers Charter and Jobs Security Guarantee to ensure state-employed coal workers are not left behind.
Ms Palaszczuk estimated there were 400 workers in coal mines and coal-fired power stations who will have their jobs guaranteed as coal-fired power stations transition to clean energy hubs.
"That ensures workers will have the opportunity to continue careers with publicly owned energy businesses or elsewhere in the public sector," the premier said.
Ms Palaszczuk said the guarantee will be backed by $150 million in funding.
So what is happening to state-owned coal stations?
Coal-fired power stations will operate in a backup capacity until pumped hydro energy storage is operational.
A Queensland Energy System Advisory Board, to be established in 2025, is set to provide advice on energy security every two years to ensure the state is being provided with reliable energy.
"We will be able to turn the [coal-fired] stations back on if something goes wrong," the premier said.
Once they are no longer needed to burn coal, the plan is for the stations to become "clean energy hubs".
The hubs will be home to:
- grid scale batteries
- gas and then later hydrogen power stations
- maintenance hubs for nearby government-owned renewable wind and solar farms
"That means that these energy hubs will continue to contribute to regional economies," the premier said.
Will Queensland still export coal?
The Premier said export demand for Queensland coal would remain strong for some time, especially for the production of metallurgical steel.
"There's still going to be countries that need our coal and, of course, the metallurgical coal is needed for steel production," she said.
"Until there's an alternative to manufacturing steel, the world will still need metallurgical coal."
But Ms Palaszczuk said demand for Queensland's hydrogen would also increase, as other countries turn to renewable energy sources.
"So you will see another transformation happening over the next decade — or two decades — where there is going to be more demand for our hydrogen as those other countries set their own national targets," the premier said.
