More work needed to deliver reliable energy transition

  • Posted 28 September, 2022
  • Media Releases

Wednesday, 28 September 2022

The Queensland Resources Council (QRC) has welcomed the release of the Palaszczuk Government’s new 10-year energy plan, but warned the Government has work to do to attract the large-scale investment required to implement it.

QRC Chief Executive Ian 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 per cent renewable energy by 2032, will require detailed planning and extensive industry and community consultation over many years,” Mr Macfarlane said.

“At midday today, around the time the Premier released the plan, the make-up of the electricity market in Queensland was:
* 71 per cent from coal
* 25 per cent from solar
* 3 per cent from gas
* 1 per cent from wind
(Source – AEMO)

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

“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 Palaszczuk 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 shows what is a stake if the transition to lower emissions 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.

“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.”