Queensland's new $500 million renewable energy fund will squeeze out private investment and cannibalise the profits of its state-owned coal-fired power stations, say energy experts.

At the same time as it boosts wind and solar projects, the Palaszczuk government will also allocate $500 million to the state-owned fund manager, Queensland Investment Corporation, to buy more local assets, including a possible bid for the Dalrymple Bay coal terminal that was sold by the Beattie government in 2001.