QLD BUDGET: coal-fired power plants deliver $2bn dividends

Coal-fired power generators are chiefly responsible for delivering more than $2bn in dividends to the Palaszczuk government, before the state exits coal-fuelled electricity in 2035.

Queensland’s state-owned Callide coal-fired power station. The state’s fleet of coal-fuelled generators will be all-but phased out by 2035, to meet its ambitious renewables targets.

Queensland’s coal-fired power generators are chiefly responsible for delivering more than $2bn in dividends to the Palaszczuk government over the next four years, before the state exits coal-fuelled electricity in 2035.

The budget papers reveal state-owned electricity generators are forecast to return $463m in 2023-24, and about $500m each year after that, fuelled by wholesale electricity prices.

Last year, the government ­announced it would all-but phase out coal-fired power by 2035 in order to hit its ambitious target of 80 per cent renewable energy by that year. The power supplied by the coal-fired generators will be replaced, in part, by two giant state-owned large-scale and long-duration pumped hydro projects.

In Tuesday’s budget, $6bn was committed to the more advanced Borumba pumped hydro energy storage project, near Gympie in southeast Queensland, and $1bn to a similar scheme in the Pioneer-Burdekin valley, outside Mackay.

The latter is in the very early stages of planning, and the $1bn will be used to complete a feasibility study. When it was announced in September last year, the government conceded it would not receive a detailed ­assessment for the Pioneer-Burdekin project until 2024.

“Queensland Hydro will also continue to investigate other large-scale, long-duration pumped hydro sites in the event the project is unable to proceed,” the government’s own September press release said. The budget papers confirm a final investment decision has yet to be made.

But Treasurer Cameron Dick on Tuesday insisted the government had already decided it was “proceeding” with the Pioneer-Burdekin pumped hydro scheme in the current location, even though feasibility, engineering and geotechnical studies had not been done.

Mr Dick said he was confident the studies would not recommend a different site.

Treasurer Cameron Dick speaks to reporters just before he delivers his budget speech in parliament. Picture: Dan Peled / NCA NewsWire

Over the forward estimates about $19bn is forecast to be spent on capital investment to deliver the Queensland Energy and Jobs Plan to meet the renewable ­energy targets.

A fraction of the coal-fuelled royalties boom, which will generate about $7.2bn in extra revenue over the next five years, including $5.7bn this financial year, will be returned to resources ­companies.

A new Low Emissions Investment Partnerships program, worth $520m, will be set up to encourage the mining industry to accelerate investment in infrastructure to reduce emissions.

Mr Dick said some companies were already investigating ways to capture methane and use it to generate electricity.

More than $1bn will also be spent to build a 1100km transmission line between Townsville and Mount Isa to connect the north-west minerals province with the national electricity grid.