Queensland drops hydro options
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Queensland’s new LNP government has dumped a major hydro project, report findings notwithstanding.
Queensland’s recently-elected Crisafulli government has cancelled the Pioneer-Burdekin Pumped Hydro Energy Storage project, citing high costs and environmental concerns despite a report indicating scaled-down versions could offer substantial benefits.
Proposed by the previous Labor government, the project aimed to address Queensland’s energy storage needs by 2035, providing 120,000 MWh of storage with various capacity options.
The report’s findings, however, have not swayed the LNP, which argued that even scaled-down models would impact local communities.
The Queensland Hydro report (PDF) analysed three options: a full-scale 5,000 MW project, and smaller 2,500 MW and 3,750 MW versions.
While the full-scale option was deemed financially unviable, with projected costs as high as $24.7 billion, the 2,500 MW and 3,750 MW models were found to be cost-effective, delivering “exceptional value on both a capacity ($/MW) and storage ($/MWh) basis”.
The report highlighted that the 3,750 MW option would have provided a balanced approach, delivering a net positive impact, including significant reductions in greenhouse gas emissions and energy price stability.
Deputy Premier Jarrod Bleijie, however, dismissed these options, calling the project a “hydro hoax”.
The LNP has also decided to repurchase 57 properties initially acquired for the project, at a potential added cost of $15 million.
Energy Minister David Janetzki claims the community impact of any version of the project was too significant, saying that “the people of this region have been through enough”.
Environmental concerns allegedly played a prominent role in the LNP’s decision.
The Queensland Conservation Council warned that alternative pumped hydro projects might have even greater environmental impacts than the Pioneer-Burdekin project.
Critics of the cancellation, including opposition leader Steven Miles, argued that Labor would likely have pursued the viable 3,750 MW option, which could have balanced community impacts with essential energy benefits.
Emma Aisbett of ANU’s Zero-Carbon Energy for the Asia Pacific Initiative has expressed frustration at the cancellation, stating it was “hard to view as anything but political point scoring” given the project’s potential benefits and the investment already made.
The LNP government has yet to detail its alternative strategy for renewable energy storage, despite plans to repeal the 2032 renewable energy legislation tied to the project.
While supporting emissions targets, the government has not specified its intentions for other hydro projects, including the Borumba Dam scheme.
