'Chaotic signals' from Queensland government causing uncertainty and wavering investor confidence in renewable energy sector
Queensland renewable energy and conservation groups say there's uncertainty and wavering investor confidence being caused by the state government's mixed messages on energy policy.
The Crisafulli government has committed to reach net zero carbon emissions by 2050 and made it clear it backs pumped hydropower, wind and solar projects.
But decisions to extend the life of publicly-owned coal-fired power stations beyond 2035, expand gas exploration and call in certain wind farm projects has raised concerns.
The Queensland Conservation Council said the government had created "energy policy chaos", which was impacting large scale renewable energy investment.
"The Queensland government is all over the shop on energy right now," campaigner Stephanie Gray said.
"All of this sends chaotic signals to investors and basically it sends the signal that investors should take their money to other states.
"If we're not building new energy supply, it means that we're not managing power bills, we're not bringing down emissions and critically, it means we're not doing the planning to make sure the renewable roll out benefits nature and communities."
A recent member survey by industry body, the Queensland Renewable Energy Council (QREC), found low levels of confidence in current state government policies regarding investment certainty.
About 26 per cent of respondents "strongly disagreed" with the statement that the Queensland government's policy settings effectively promoted investment certainty in renewables.
Thirty-three per cent "disagreed" and 35 per cent were "neutral" in response to the statement.
More than 45 members took part in the survey with more than a third identifying as renewable energy developers and operators.
QREC chief executive Katie-Anne Mulder said two surveys had been conducted since last September and the results showed a drop in positive sentiment regarding investment certainty.
"So what do investors need — they need clarity on what is the road map for Queensland, where do renewables sit in that, as well as to be really clear, what's the role of coal-fired power?" She said.
"I think we all acknowledge we need a responsible transition, but what does that mean in terms of the time frames for shutting down the coal fired power stations?
"An investor — whether it be domestic or international — they're going to be looking at those time frames because they want to ensure they have a strong market signal for long term investment in Queensland."
Energy Minister David Janetzki rejected that the state government wasn't being clear with its energy policies in regards to renewables.
"I think our energy position is actually clear," he said at a press conference in Toowoomba last Friday.
"We want to bring communities along in relation to those renewable projects, but I send clear messages as energy minister that I want to see more investment, particularly from the private sector into renewables projects.
"There are significant projects that are necessary and on the books with respect to renewables."
He pointed to the CopperString transmission line project in north-west Queensland, proposed wind farm projects in Hughenden and the Borumba pumped hydro project near Gympie.
Mr Janetzki is working on a five-year energy road map to chart the state's path to net zero which is due for release by the end of the year.
It's a document widely anticipated by the energy sector with the plan expected to detail what renewable energy mix the state will need to reach net zero and when coal-fired power stations could close.
The former Labor government previously committed to ending reliance on state-owned coal fired power generators by 2035 — and proposed turning them into renewable energy hubs.
But Premier David Crisafulli made it clear during the election campaign in October, an LNP government would continue to keep coal generators running for longer.
State-owned clean energy company CleanCo chief executive Tom Metcalfe said there would come a time when the state's coal-fired power stations would need to be wound down.
"But eventually as we think of the energy transition and as the coal units come to the end of their lives, we need to have a plan."
CleanCo runs the state's only operating pumped hydro power station at Wivenhoe Dam near Brisbane.
The LNP has flagged gas will play a key role with coal as the state transitions to lower carbon emissions, and wants to tap into the state's vast gas reverses.
Gas exploration and generation will be expanded, and additional projects such as a gas peaker at Kogan Creek and two gas-fired generation projects are being progressed by CleanCo and Stanwell.
Before the state election last October, the LNP pledged to scrap legislated renewable energy targets — to reach 50 per cent renewable energy by 2030, 70 per cent by 2032 and 80 per cent by 2035.
Earlier this year, Mr Janetzki tasked the newly-established Queensland Productivity Commission to review energy policy, productivity and emissions by September 1.
It will review the Clean Economy and Jobs Bill and Renewable Transformation Act — which includes the state's three emissions reduction targets.
The LNP says the state has already met the target to cut emissions by 30 per cent on 2005 levels by 2030, and remains committed to reach net zero by 2050.
But that means the target of reducing carbon emissions by 75 per cent by 2035 is in doubt.
Ms Gray said if the state government ditched emissions targets, it would be breaking an election promise to Queensland voters.
"The Crisafulli government was elected after they showed bipartisan support for Queensland's emission reduction targets, and what we're seeing right now is them walk away from those commitments," she said.
"It would be really disappointing for the Crisafulli government to break their promise to Queenslanders and if they keep going down this track, they won't be able to meet either emission reduction target."
Adding to the uncertainty has been recent planning law changes to wind farm developments and a number of projects being called in by the planning minister Jarrod Bleijie.
The changes — introduced in February — require wind farm development applications to be subject to impact assessments, therefore requiring statutory public consultation and third party appeal rights.
In May, the Moonlight Range Wind Farm proposal in central Queensland was axed by Mr Bleijie, citing a lack of community consultation, limited worker accommodation availability and environmental impacts.
Changes to planning laws are also being considered by a parliamentary committee, which could make it harder for any renewable energy project to apply for state approvals such as requiring a social impact assessment and a community agreement with local councils.
Ms Mulder said since the law changes there had been no new wind farm project applications in Queensland.
"Investors like to see really clear goal posts, what's the assessment process look like," she said.
"At the moment there's a bit of wash going through, where we're not quite clear on what the end product looks like, is this the end of reforms for the sector? Or halfway through? … So it's a little up in the air for our members at the moment."
Ms Mulder said the changes before parliament would also impact renewable projects given the work needed to complete the assessments and council agreements.
"If this bill goes through, there's no doubt that there will be delays to projects that I would expect would be upwards of 12 months," she said.
Mr Janetzki said it was important renewable energy projects had community confidence and support before being approved.
"Those reforms are all about getting that community consultation right, impact accessible must be part of that," he said last Friday.
"In the same way that any large scale project seeks community responses and consultation, it's appropriate it be done for renewable projects too, so that's what that bill is all about delivering."
Grattan Institute's energy and climate change program director Tony Wood said it was clear during the state election the LNP was going to reshape Queensland's energy plan if it won government.
He said the sector expected the uncertainty to be clarified at the end of year, once the road map was released.
"I think right now there's a lot of messiness, it can be resolved, and I'm hoping it will be resolved by the government.
"But in the short term, all the things that we're referring to, make it uncertain, unclear, impose more risks, risks mean more delays, more delays mean more cost."
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