PERTH (miningweekly.com) – The Queensland Resources Council (QRC) has welcomed the Queensland government’s new 10-year energy plan, but warns that more will need to be done to attract large-scale investment.

Premier Annastacia Palaszczuk on Wednesday unveiled the Queensland Energy and Jobs Plan, which is aimed at investing A$62-billion in the energy system up to 2035, in public and private funding.

At the heart of the plan was a 70% renewable target by 2032, and an 80% target by 2035, with the targets to be legislated.

The plan will deliver a 50% reduction in electricity sector emissions on 2005 levels by 2030, and a 90% reduction in electricity emissions by 2035/36.

Palaszczuk announced plans for existing coal-fired power stations to progressively become clean energy hubs from 2027, with the infrastructure to include gas and later hydrogen-powered stations.

In 2027, the state government is also planning a new gas to hydrogen power station at Kogan Creek, along with additional battery storage and more wind and solar generation.

The Energy and Jobs Plan also includes a transmission super grid delivering 1 500 km of transmission lines from Brisbane up to North Queensland, at an investment of nearly A$11-billion to 2035, as well as 22 GW of new wind and solar power.

A 5 GW pumped hydro energy storage unit will also be built, 70 km west of Mackay, with Stage 1 of the project to be completed by 2032.

“We must invest now. Not just for our climate. We must address this issue at the same time we focus on new job opportunities to bring everyone along with the clean energy industrial revolution at our doorstep,” Palaszczuk said.

“Those are jobs supplying renewable hydrogen, critical minerals and renewable technologies for the world.  The International Energy Agency estimates that the value of clean energy will exceed oil by 2030. The race is now on to secure clean energy supply chains.”

She pointed out that Queensland was endowed with both renewable resource potential as well as critical mineral resources to be a renewable energy superpower.

While the QRC has welcomed the release of the energy plan, CEO Ian Macfarlane has warned the government has work to do to attract the large-scale investment required to implement it.

Macfarlane said the resources sector supports the transition to a lower emissions future, but that detailed planning was required to ensure stability for regional communities, investors and energy supply and the cost of electricity.

“The energy plan’s ambitious centrepiece, a transition to 70% renewable energy by 2032, will require detailed planning and extensive industry and community consultation over many years,” Macfarlane said.

“At midday today, around the time the Premier released the plan, the make-up of the electricity market in Queensland was 71% from coal, 25% from solar, 3% from gas, 1% from wind.

“This underlines the opportunities to diversify Queensland’s energy mix, but also the immense size of the challenge,” he added.

“Queensland will need large-scale investment to meet this target, but at the moment Queensland is cementing a reputation as a higher risk jurisdiction where the rules of engagement can change suddenly without warning.

“The biggest signal the government has sent to resources and energy investors in 2022 is to hike coal royalty taxes to the highest in the world, without consultation.

“A recent report from Commodity Insights warned of the significant risk of a contagion effect to investment in other commodities, including gas and hydrogen. International investors are sounding a note of caution that Queensland is no longer the trusted place for project partnerships that it once was.

“Queensland has Australia’s youngest and most modern coal-fired power station fleet. It is a significant advantage for supporting manufacturing and other types of industry during detailed planning to diversify the energy mix and ensure stability as intermittent energy sources like solar and wind are further integrated into the grid.

“Volatility in global energy markets and power prices show what is a stake if the transition to lower emissions from energy sources is rushed or poorly planned.

“The Queensland resources industry supports the vision for our state to be an energy superpower, just as we have been, and can continue to be, a resources superpower. 

“The Queensland government must commit to transparent, timely and genuine consultation on all matters relating to resources and energy investment in order to achieve the targets laid out in today’s plan,” Macfarlane said.

“If not, it will be Queensland workers, their communities and all energy consumers – including those in Brisbane – who will pay the price through lost jobs, higher electricity bills and less reliability when they go to flick the light switch.”