‘Absolute disgrace’: Daintree Microgrid Project’s federal funding pulled

A Far North MP has accused Labor of “an act of political bastardry” over its failure to honour a nearly $20m commitment to fund a renewable energy scheme in the Daintree Rainforest.

Member for Leichhardt Warren Entsch has attacked Labor over their handling of the Daintree Microgrid Project. Picture: NCA NewsWire / Martin Ollman

A Far North MP has accused Labor of “an act of political bastardry” over its failure to honour a nearly $20m commitment to fund a renewable energy scheme in the Daintree Rainforest.

But a government spokeswoman has hit back, declaring that the money for the Daintree microgrid project was pulled after the proponent, Volt Advisory Group, didn’t meet its contractual commitments.

Artist impressions show the full extent of plans to create a new microgrid in the Daintree with a large solar farm. Picture: Supplied

In his valedictory speech, outgoing Member for Leichhardt Warren Entsch took aim at Energy and Climate Change Minister Chris Bowen on Monday, calling for the government to hand over the money to ensure works could start after the wet season.

“Minister Bowen, his department and his bureaucrats have done everything in their power to prevent this project from going ahead,” Mr Entsch said.

“They have bluntly refused to release the money that was set aside by the previous government and it is an absolute disgrace and in my view an act of political bastardry.”

Climate Change and Energy Minister Chris Bowen has faced criticism regarding the proposed $20m Daintree Microgrid Project. Picture: NewsWire / Martin Ollman

In response, the government revealed it had backed out of the project which was expected to provide renewable energy to around 300 customers in the Daintree, which would have included an 8MW solar farm, and a 1MW clean hydrogen plant.

“The Albanese Government is investing in real microgrid projects in regional and First Nations communities, bringing more reliable renewables into a modern, fit-for-purpose energy grid,” a spokeswoman for Mr Bowen said.

“The Daintree Microgrid Project was given every opportunity to meet requirements they were contractually obligated to meet but they failed to do so and the grant funding ceased.

“This was communicated to the proponent.”

It is understood that the funding has now been absorbed back into the Department for Climate Change, Energy, the Environment and Water.

Volt had worked closely with Eastern Kuku Yalanji peoples in the region, Mr Entsch said, to establish a groundbreaking business model that would have benefited the region’s traditional owners.

“We were set for a unique and inspiring project that would be Australia’s first

Indigenous majority-owned renewable electricity grid,” he said.

“This was going to facilitate an opportunity for the (Eastern) Kuku Yalanji people to start bringing home, families that had been displaced from the area many years ago, and ultimately help them to build homes on their traditional lands.”

Despite the setback, Volt director Richard Schoenemann said the proponents still planned to build the microgrid, set to be located on a rezoned cattle farm near Cow Bay, with the company currently courting foreign investment.

“We’ve achieved all the necessary pre-investment approvals,” Mr Schoenemann said.

“We’ve got our federal environment approval, state government landholder consent, local government development approval, Wet Tropics permit and Australian Energy Regulator retail exemption for this project.

“We have investors ready to go but we were exposed to challenges from Tropical Cyclone Jasper.

“We can’t bring heavy machinery to the site until the Alexandra Range can be crossed by the required machinery and that won’t be until next year.”

It’s understood that Volt received an “end of activity” notice from the federal government in late August, outlining the federal government’s withdrawal from the project.

Work on the Daintree Microgrid Project was scheduled to start “by 2024”, according to the original government statement announcing the initiative.

Originally published as ‘Absolute disgrace’: Daintree Microgrid Project’s federal funding pulled