Editorial: Pumped hydro farce makes Snowy 2.0 look cheap

Next to Queensland’s farcical pumped hydro plan, the beleaguered Snowy 2.0 looks like an absolute bargain, writes the editor.

The site of Labor’s proposed Pioneer-Burdekin Pumped Hydro project

Pumped storage hydropower, or pumped hydro for short, is an incredible technology that basically uses water as a battery.

By linking two reservoirs, one at a high altitude and one lower, by a tube or tunnel, water can be released and run through turbines when power is needed, effectively stabilising the entire power grid.

In times of excess energy (generated by wind turbines or solar panels) the water is pumped up to the higher reservoir, effectively charging the battery for later use.

It is ingenious, elegant and practical. But as Australia is discovering, it ain’t cheap.

In the Snowy Mountains, Malcolm Turnbull’s Snowy 2.0 project remains stuck deep underground with construction headaches seeing the original $2 billion budget blowing out to $12 billion.

But that seems like an absolute bargain compared to Queensland Labor’s Pioneer-Burdekin project, which in 2022 then premier Annastacia Palaszczuk said would cost $12 billion.

While her successor Steven Miles conceded that the final construction figure would likely be higher, he chose not to share that number with the people of Queensland.

As The Courier-Mail reveals today, the true cost of the now-cancelled project was tipped to be an eye-watering $36.77 billion.

To put that ridiculous number into some context, that is $6734 for every man, woman and child in Queensland.

Or to put another way, it would fund almost 11 Gabba rebuilds – the project Mr Miles canned because of its $3.4 billion price tag.

New State Development, Infrastructure and Planning Minister Jarrod Bleijie labelled the aborted project “the greatest political con job in Queensland’s history”.

“It is implausible the Labor caucus could even think about endorsing Steven Miles and Cameron Dick as their leadership team,” he said.

“This was their signature project and should never have gotten out of the starting gates.

“They lied black and blue to Queenslanders right before an election and hid the true costs from taxpayers in a cost of living crisis.”

Although it seems Queensland has dodged a bullet on a project that had the potential to have blown out even further – and all without any sort of cost-benefit analysis – we did not get off scot-free.

Identifying the site alone cost $35 million, and 56 properties were acquired at a cost of $45.6 million.

Queensland Hydro says the former landowners will get first choice to buy back their homes, but details are scarce.

On the Friday before the state election we wrote in this column of the previous government’s profligate spending.

At the time we pointed to the ridiculous price tag on this renewable energy centrepiece.

“The Premier’s vision that he is seeking a mandate for is also a big-spending one, which would see the state spending more than it earns for too long into the future,” we wrote.

That he was not only apparently prepared to write a blank cheque for the project, without outlining the benefits to voters, and then withhold the costs, is a black mark against the former premier.

Pumped hydro is a crucial part of the energy mix in many countries, and it will be in Australia, too.

But not at any price.

OUR DEMOCRACY A MODEL

It says a lot about Australian democracy that just over a week after the state election the new Premier was in Mackay on Sunday, pressing the flesh and explaining to locals why he had to cancel the Pioneer-Burdekin pumped hydro project, a more-or-less typical day for any Queensland premier.

While there has been great upheaval in the lives of our state MPs and some bureaucrats, for the voters the wheels of government did not stop turning as there was a smooth and (generally) gracious transition from Labor to LNP rule.

And while some voters may have had a whinge about having to take time out of their Saturday to perform their democratic duty, that was quickly forgotten after a sausage sanger and a friendly chat with the neighbours at the local polling booth.

It’s difficult not to compare that to the US, “the great experiment” of democracy.

Without compulsory voting, its debate seems to have migrated to the fringes of the political spectrum. The “sensible centre”, so vital in Australian elections, seems to have been left by the wayside.

There are real concerns that the US election result (that should become apparent in Australia from late Wednesday) may not be accepted – particularly by Donald Trump and his supporters – and will be challenged in the courts or (much worse) on the streets.

We hope that doesn’t occur, but also thank our lucky stars we live in a nation that does democracy right.

Responsibility for election comment is taken by Chris Jones, corner of Mayne Rd & Campbell St, Bowen Hills, Qld 4006. Printed and published by NEWSQUEENSLAND (ACN 009 661 778). Contact details here