Premier Steven Miles defends eye-watering cost of state’s pumped hydro project
Premier Steven Miles has defended the cost of the state’s pumped hydro after monumental backlash but was unable to say how the government planned to recoup the billions of dollars of capital outlay.
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Power bills would be cheaper “in the long-term” under Queensland’s planned multi-billion dollar pumped hydro scheme – but Premier Steven Miles won’t say how the state would recoup the capital costs.
According to the state government’s eye-watering $62bn Energy and Jobs plans, which includes an estimated $30bn for two pumped hydro projects, household bills will be “$150 lower in 2032” than otherwise – about $3 per week.
Speaking in Mackay where he had faced push back from locals over the state government’s Pioneer-Burdekin Pumped Hydro Project – which industry sources have estimated could cost as much as $18bn – Mr Miles on Thursday stood firm on the state’s commitment to the plan.
“These projects last for a very, very long time,” he said.
“So while they have a high initial capital cost, the ongoing cost to deliver stored power is very, very low. And when you compare it to all of the alternatives it is the best option.”
Asked whether Queenslanders would see any increase to their power bills to pay for the major capital outlay, he said: “no, the modelling behind our renewable energy and jobs plan shows that it will deliver cheaper power than if we didn't have it”.
But the Premier did not answer on how the government planned to recoup the billions of dollars of capital outlay.
Instead, he said: “as I explained earlier this project is one of the cheapest ways to deliver 24/7 stored energy”.
Former Premier Annastacia Palaszczuk – who announced the pumped hydro scheme to much fanfare in 2022, before locals were aware of the plans – had indicated it would be funded via government-owned corporations.
LNP Deputy Leader Jarrod Bleijie seized on those comments on Thursday, and called on the government to come clean.
“The reality is this – if you have a project that is now blown out to over $20bn, someone’s going to pay for it, and that cost doesn’t even likely include the transmission lines which will be billions of dollars in themselves,” he said.
“The Labor Party thinks money is just growing on trees – it’s not, it’s coming from Queenslanders that are hurting in a cost-of-living crisis, and they cannot afford any more increases on their power bills.”
Queensland’s Energy and Jobs plan states: “Independent modelling indicates that under the plan, lower wholesale electricity prices will flow through to lower retail bills, with the average annual bill for a household projected to be $150 lower in 2032 and $1,495 lower for a small business, than without a plan”.
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