Pioneer-Burdekin pumped hydro at risk of extending coal’s life: Auditor-General

Premier Steven Miles’ flagship pumped hydro project could create problems in the state’s transition from coal if there are significant cost overruns, the Auditor-General has warned.

Premier Steven Miles’ flagship Pioneer-Burdekin pumped hydro project could create problems in the state’s transition from coal if significant cost overruns threaten its viability, the Auditor-General has warned.

The state government has faced mounting questions about the cost and benefit of the Pioneer-Burdekin pumped hydro project as it forges ahead with land acquisitions and work on a business case.

Auditor-General Brendan Worrall told a parliamentary inquiry on Monday there was little detail about whether the government’s investment in the project would be beneficial.

“It’s got to be a complete ‘watch and brief’ up until the business case, I would think, and then they’ll have to make a decision based on that business case, based on the cost and projected benefits,” he said.

Mr Worrall agreed with LNP committee member Pat Weir’s suggestion that significant cost overruns could affect the viability of the project.

“Yep, and I guess we’re seeing that in all sorts of infrastructure projects,” Mr Worrall said, citing rising labour costs and ongoing supply chain issues.

The Pioneer-Burdekin pumped hydro had an initial price tag of $12bn when it was announced by Annastacia Palaszczuk in 2022, but it could end up costing taxpayers as much as $18bn.

Auditor-General Brendan Worrall

Premier Steven Miles is pushing ahead with the project despite being unable to say how much it will cost.

Mr Worrall said on Monday the state government faced a narrow path keeping coal-fired power stations operational while moving to renewable energy.

“The transition needs to be carefully managed to get the timing right in terms of the exit of coal dependency, or coal-generated electricity, and then bringing on renewables so you’re getting that balance,” he said.

“If renewable projects are not delivered on time or budget, then there’s a risk the life of coal may be extended.”

The state government spent more than $111m buying some 40 properties and doing technical studies for the Pioneer-Burdekin pumped hydro project that has no business case nor environmental impact statement and is vehemently opposed by locals.

A second $14.2bn pumped hydro development at Lake Borumba, south of Gympie, is also under way and will supply up to 2000MW of electricity.

The two pumped hydro projects are at the centre of the state government’s 2022 $62bn Energy and Jobs Plan.

Mr Miles has previously championed pumped hydro as being one of the cheapest ways to store energy and said the Pioneer-Burdekin project was needed.

The LNP said it would not support the development without a business case.