Dam power date pushed back
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Queensland’s flagship hydro project is facing soaring costs and slipping deadlines.
The estimated cost of Queensland's Borumba Pumped Hydro project has surged by $4 billion, now exceeding $18 billion, with the project's completion date pushed back nearly three years to 2035, according to a report by Queensland Hydro.
The report, commissioned by the previous Labor government, highlights significant risks and delays in delivering the renewable energy initiative, which was initially expected to provide its first power in 2030.
The Queensland Hydro analysis reportedly revealed a less than 1 per cent likelihood of the project meeting its original 2030 deadline.
Adjusted timelines now target a risk-mitigated completion range between late 2032 and mid-2035.
The delays and budget escalations are attributed to what Treasurer and Energy Minister David Janetzki described as “unrealistic assumptions” made by the former Labor administration during project planning.
The report’s findings add to growing concerns about the financial feasibility of Queensland’s renewable energy projects, with the Pioneer-Burdekin project recently scrapped due to projected costs exceeding $30 billion.
The newly elected LNP government has pledged to overhaul Queensland’s energy policies.
Janetzki says the state will seek to align energy policy with “engineering and economics, not ideology”.
He said the government is committed to maintaining coal and gas assets, and exploring potential nuclear energy options.
The LNP recently announced a $1.4 billion program to maintain Queensland's coal-fired power stations, which currently supply 66 per cent of the state’s electricity.
Additional investments in gas infrastructure are also anticipated.
Janetzki is scheduled to meet with Queensland Hydro representatives this week to reassess the Borumba project’s viability and explore strategies to salvage it.
He says discussions will address environmental impacts, stakeholder concerns, and potential cost-management measures.
While renewable energy investments are projected to push Queensland’s clean energy share above 50 per cent by 2030, the state’s dependency on coal poses significant policy challenges.
