QUEENSLAND ELECTION 2020 CLEAN ENERGY RECOMMENDATIONS
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Image: Warwick Solar Farm
QUEENSLAND
ELECTION 2020
CLEAN ENERGY
RECOMMENDATIONS
LOW-COST, CLEAN Today, Queensland’s residential electricity prices remain high. Meanwhile, renewable
energy accounts for just 14 per cent1 of Queensland’s electricity output – the lowest in
ENERGY SUPERPOWER Australia. With political leadership, this can change.
Queensland’s clean By exploiting the state’s world-class solar resources and its wind resources, Queensland
can grow its renewable energy industry while producing Australia’s cheapest electricity.
energy resources are Renewable energy can be complemented by existing flexible generation sources, as well
the envy of the world. as new investments in storage technologies to balance the grid.
At the dawn of a new This cheap, clean electricity can cut the cost of living for households and businesses, and
decade and in response support the competitiveness and expansion of local mining, minerals processing and
industrial manufacturing. It can also be exported to the power-hungry southern states
to the deep economic and, ultimately, our resource-poor Asian neighbours who are looking for suppliers of low-
impact of COVID-19, cost, clean hydrogen.
the Sunshine State Since 2017, over $3.2 billion has been invested in new large-scale clean energy projects
in regional and rural Queensland communities, with approximately 4000 large-scale
has the opportunity construction jobs created at peak. Around a further 4000 people are employed in
to exploit these rooftop solar installation and the supporting supply chain, including equipment supplies,
natural advantages logistics, sales, marketing and administration.
to bring down the Around 5500 MW of large-scale renewable energy generation is needed between now
and 2030 to meet Queensland’s target of 50 per cent renewable energy2, which could
cost of electricity attract almost $10 billion of private investment and create more than 10,000 jobs.
for households and Investors stand at the ready, with around 17,000 MW of new large-scale renewable
energy projects having already secured planning approvals.
businesses, and position
Investment, however, has slowed dramatically in the past year due to the many complex
the state as the natural hurdles for connecting new power supply, constraints on many operating solar and wind
home of energy-intensive farms and inadequate transmission connections. The lack of long-term federal energy
industries in Asia Pacific. policy has also played a material role in this slow down, with the 2020 Renewable
Energy Target now delivered and no clear federal policy going forward.
But with strong State Government leadership to manage the transition, facilitate
private investment and expand the market for the state’s low-cost clean energy, this
decline can be reversed. In the process, the renewable energy sector can also play a big
role in jumpstarting economic activity and jobs across the state following the impacts
of COVID-19, while accelerating Queensland’s transition to become a clean energy
superpower.
1
As at 31 December 2019
2
Based on modelling for the Queensland Renewable Energy Export Panel’s Final report, 30 November 2016,
https://www.dnrme.qld.gov.au/__data/assets/pdf_file/0018/1259010/qreep-renewable-energy-target-
report.pdf
CLEANENERGYCOUNCIL.ORG.AU
LARGE-SCALE
• Promoting and supporting the
development of green ammonia and
green steel manufacturing sectors.
RENEWABLES • Working with industry to identify
suitable renewable hydrogen zones/
hubs and supporting the acceleration
of development approval processes
and connection to the electricity and
1. COMMIT TO A MINIMUM The Government should commit to 4. DEVELOP A TRANSMISSION gas network.
50 PER CENT CLEAN ENERGY maintaining transparency on its progress STRATEGY TO LAY THE • Expanding funding to support
TARGET FOR 2030 in meeting the target through an online FOUNDATIONS FOR RENEWABLE renewable hydrogen projects
Roughly 8 GW of old coal-fired power tracker or regular public reporting. Should ENERGY ZONES AND REGIONAL (leveraging vast private sector capital)
stations are due to retire from the National Queensland fall behind in meeting the DEVELOPMENT to build scale, increase learning and
Electricity Market by the early 2030s, target, it should work with industry to A strong transmission network is needed drive down costs.
meaning that large amounts of new ensure the right measures are put in place to bring new clean energy to market and
electricity generation capacity must to bring forward investment. support low-cost electricity for businesses
8. DEVELOP CLEAN ENERGY
be planned and built in the next 10 years. and households. Queensland’s long, skinny
SKILLS, TRAINING AND
2. RULE OUT GOVERNMENT and weak network is a significant barrier to
This is an enormous opportunity for new Image: Mt Emerald Wind Farm A WORKFORCE PLAN
FUNDING FOR NEW COAL-FIRED new clean energy investment.
investment, employment and diversified The transition to clean energy is already
POWER STATIONS
income streams for Queensland’s regional Increasing the electricity transfer capacity creating a jobs boom across regional and
Investors have made it very clear that 5. BUILD AND EXPAND 7. BUILD DEMAND AND
communities. If Queensland does not get between Queensland and NSW (a minor rural Australia. Skilled workers are needed
the lowest-cost and most effective forms QUEENSLAND’S ENERGY- EXPERTISE FOR A NEW
on the front foot to seize this opportunity, expansion is now under way and a further across the many parts of the supply chain,
of new generation is renewable energy INTENSIVE INDUSTRY, RENEWABLE HYDROGEN
the jobs and investment will flow to other necessary expansion is being considered) design, construction and operation of
and energy storage. However, policy POWERED BY CLEAN ENERGY INDUSTRY
states. and developing a Queensland Transmission clean energy projects. With the right policy
uncertainty is creating a major challenge With some of Australia’s best renewable Renewable hydrogen, which can be
Strategy are the key priorities. With more settings and procurement standards, up
New renewable energy generation is and undermining this continued new energy resources, Queensland is in the box produced using just water and renewable
interconnection, North Queensland can to 75 per cent of job creation through
cheaper, cleaner and quicker to build than investment, resulting in a 90 per cent seat to generate the lowest-cost power in electricity, is a clean energy fuel of the
take advantage of its energy opportunities renewable energy could be either local or
thermal generation, and will underpin collapse in financial commitments to new the country. This would make it a natural future. It could play an important role in
and all of Queensland can earn more by regional.
Australia’s transition to a low-emission large-scale investment in Queensland year home for low emissions, energy-intensive the decarbonisation of Australia’s energy
exporting to the energy-hungry southern
economy. on year from 2018 to 2019. industries, such as aluminium and steel and industrial sectors as an emissions-free Three elements are key to providing clear
states.
Clean energy investors are not seeking new production and minerals processing. alternative to natural gas for our homes renewable energy career pathways to both
The lack of long-term national energy Queensland must accelerate the co-
subsidies. What they require is clear, stable and businesses, to diesel in long-haul regional and urban Queenslanders:
policy is further exacerbated by the Federal The State Government should commit
ordinated development of Renewable heavy vehicles, to natural gas or coal in
and strong energy policy to give them the Government’s openness to funding new to the development of an energy- • energy policy certainty to underpin
Energy Zones, so it can continue to attract the production of ammonia, and even
confidence to invest in these long-term coal-fired generation. This creates further intensive manufacturing strategy aimed investor confidence and ensure a
clean energy projects and new industries to metallurgical coal in the steel-making
assets. It is therefore fundamental that uncertainty for investors in new energy at leveraging its wind, solar, pumped steady pipeline of viable projects
and employers to regional areas. The process.
any Queensland Government commits to generation in Queensland. To address hydro and green gas advantages to not
New South Wales Government will pilot • strengthened links between renewable
a minimum 50 per cent renewable energy this, the Queensland Government must only maintain, but greatly expand the If Australia can successfully develop and
a Renewable Energy Zone in central-west energy developers and local training
target for 2030, with a view to building commit to not supporting such a project, competitiveness of its existing minerals and drive down the cost of renewable hydrogen,
NSW, which will involve the state taking providers
momentum to achieve a 100 per cent which would come at considerable manufacturing sectors. we could also open the door to a new
the lead in the planning and investment
target or greater in subsequent years. cost, undermine new investment, result clean energy export to rival liquified natural • integration of renewable energy into
framework. Queensland should adopt a
in materially higher power prices in 6. REDUCE RELIANCE ON DIESEL gas (LNG), supplying our energy-poor regional development and investment
Delivering on this target will deliver new similar approach.
Queensland and unnecessarily increase POWER GENERATION FOR neighbours throughout North Asia and plans to ensure that the supply of
economic activity, jobs and income in
greenhouse gas emissions. The Queensland Government could LARGE, REMOTE CUSTOMERS beyond. Queensland’s relative proximity general and skilled labour matches
regional areas, and will continue to put
provide funding to the relevant network Existing remote standalone power systems to Asia, existing LNG terminals and strong demand and to ensure that there is a
downward pressure on electricity prices.
3. ESTABLISH A 2030 ENERGY service providers or others to deliver serving large remote customers and small base of skilled energy workers would put it broad-ranging approach to supporting
The target, supported by clear timeframes Renewable Energy Zones. Developing a in a strong position to capture any export transition in coal regions.
STORAGE TARGET TO DELIVER communities, typically powered by high
and plans for the managed retirement of Renewable Energy Zone requires more opportunity that could emerge.
FIRM CLEAN POWER, 24/7 carbon diesel generation, can be replaced The Queensland Government should
ageing coal-fired power stations, will enable than transmission investment. A co-
Queensland households, businesses and by a tightly integrated combination of The Queensland Government can support establish a taskforce comprising renewable
investors, governments and communities ordinated approach to system strength
heavy industry can be powered by the sun solar, wind and storage that significantly the development of a local supply chain for energy businesses, government, unions
to plan for a smooth transition. and a streamlined grid connection process
and wind 24/7 with the support of energy reduces the reliance on liquid fuels. renewable hydrogen by: and training and research bodies to
The Queensland Government can use are needed.
storage. Energy can be stored through These systems can cut emissions understand and map out the workforce
its own purchasing power to accelerate • Establishing a 10 per cent renewable
pumped hydro facilities, big batteries, It should also involve a proactive and improve the supply reliability at needs and gaps now and in the future and
progress towards this clean energy target hydrogen blending target for gas
or even green gas, such as biogas or community and stakeholder consultation competitive costs. establish clear strategies to address them.
by updating its procurement policy to distribution networks, and providing
renewable hydrogen. program to build a vision and broad
ensure that all future contracts stipulate The Queensland Government should support for early pilots and projects.
community acceptance, and a strategy
The Queensland Government should develop a new Microgrid Strategy and
that supply must be sourced from 100 per for building a local ‘skills ecosystem’ to • Providing support for trials of hydrogen
establish an energy storage target to supporting fund, aimed at accelerating the
cent clean energy. maximise long-term regional employment fuel cell transportation with a focus on
support the 2030 energy target, broadly shift to cleaner, reliable energy supply at
outcomes. back-to-base heavy vehicles (eg. bus
in line with the standard ratio of 1:4 of competitive costs. networks, mining operations) and long-
storage capacity to renewable energy.
range road and rail transport.
This target should be technology neutral.
CLEANENERGYCOUNCIL.ORG.AU
ROOFTOP SOLAR
AND BATTERIES
When it comes to power prices, more The Queensland Government should 4. TARGETED SUPPORT FOR
and more Queenslanders are choosing develop a microgrid strategy and a fund COMMUNITY BATTERIES
to take control of their own destiny. to support pilot projects. The fund would
Provide targeted support for community
The Government can help them by help rural and regional Queenslanders
batteries, which can be integrated
committing to: become more resilient to drought,
with local networks and microgrids to
bushfires and other natural disasters. It
• Providing funding to support reduce network costs, improve safety
would reduce exposure to high power
stand-alone power systems, microgrids and reliability, reduce electricity costs
prices and ensure the smooth introduction
and other community-scale energy and enable higher levels of renewable
of community-owned energy assets to
assets so that regional Queensland generation to be integrated into the grid.
fringe-of-grid areas.
becomes more resilient and energy
The Ergon Energy network has the
independent.
2. SOLAR ROLL-OUT FOR best potential for pilot programs using
• Giving targeted support for GOVERNMENT BUILDINGS community batteries, which can be used
community-scale batteries and solar to strengthen weak parts of the network
systems for schools, hospitals and All Queensland Government buildings – and as a ‘bank’ where customers can
other public buildings, especially in including schools, hospitals, police stations store their excess solar generation for use
remote communities. and public offices – should go solar. With at night.
record low payback times for solar, the
State Government can make the switch to
1. HELP REGIONAL QUEENSLAND 5. TURBO-CHARGING OUR
clean energy and save taxpayers’ money.
BECOME MORE RESILIENT ELECTRIC VEHICLE TRANSITION
AND ENERGY INDEPENDENT
3. ENERGY-AFFORDABLE The global automotive industry is going
WITH A MICROGRID STRATEGY
RENTAL HOUSING electric, and Queensland needs to prepare
AND FUND
the necessary infrastructure to support
Stand-alone power systems, microgrids Queenslanders who rent their homes are a growing electric vehicle (EV) fleet and
and other community-scale energy exposed to increasing electricity prices and encourage a faster transition. This will
assets can improve safety and reliability, find it hard to manage their energy costs. reduce the state’s reliance on global oil
and reduce energy costs for rural and The Government can reduce electricity prices and supply chains, boost local jobs
regional Queenslanders. By supporting bills for low income households by and economic activity, and cut pollution
communities in the move to microgrids, maintaining and expanding the in our suburbs and towns.
there will be savings and lower electricity Government’s Solar for Renters Trial The State Government should provide
prices for all customers – not just those to support installation of solar PV and support to encourage further investment
supplied by microgrids. In areas affected battery systems in rental housing and in EV charging infrastructure beyond the
by natural disasters, stand-alone power aged care facilities. These initiatives will EV super highway backbone.
can also help to reduce risks and improve reduce energy bill pressure and improve
safety. the health and well-being of tenants.
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