Queensland ‘a laggard’ in race for power

Queensland’s energy network is at risk of being ‘privatised by stealth’ as the state accelerates its renewable uptake, unions and the Greens warn.

Queensland Greens MP Michael Berkman. Picture: Liam Kidston

Queensland’s energy network is at risk of being “privatised by stealth” as the state accelerates its renewable uptake to meet more ambitious climate targets, unions and the Greens warn.

The coal-rich state is on the precipice of a renewable energy boom, with the government considering lifting its 50 per cent by 2030 renewable energy target within weeks.

Renewables company CleanCo was established by the Palas­zczuk government in late 2018 as Queensland’s third publicly owned generator with the aim to drive investment in clean energy.

The government-owned corporation is yet to finish building any new renewable energy projects since it was set up and Electrical Trade Union boss Peter Ong said it “absolutely” needed to step up investment.

The proportion of Queensland’s electricity generation sector in public hands dropped 1 per cent to 65 per cent last financial year.

“We do not want to lose any of that (ownership share) as we transition to renewables,” Mr Ong said. “As far as we are concerned, that would be privatisation by stealth. I would see CleanCo as the vehicle to do large renewable projects and maintain that ownership.”

Under questioning from Greens MP Michael Berkman at August’s budget estimates, energy department head Paul Martyn confirmed the decline in the proportion of public ownership was from “additional ­renewables coming in, non-government owned”.

Public ownership of energy assets is a major flashpoint in Queensland politics, with five government-owned corporations generating, transmitting, and distributing most of the state’s electricity needs.

Former premiers Anna Bligh and Campbell Newman were punished at the ballot box for their plans to privatise billions of dollars worth of state assets to drive down debt. Keeping power companies in state hands is at the centre of the Palaszczuk government’s energy policy.

Grattan Institute energy program director Tony Wood said he did not see a problem if the share of public ownership dropped during the transition to renewables. “I don’t think it makes a lot of sense for governments to finance all of this; they can put in place an effective market and make sure the private sector investment comes in to build,” he said.

“If the government gets their policies and financial incentives right, it shouldn’t matter if it is owned by the government or private sector. If you have a truly competitive market, which tends to drive down costs more efficiently then governments are likely to do, then I think you get a better outcome for consumers.”

Mr Berkman wants all renewables to be publicly owned. “Our so-called public ­renewable energy company owns zero renewables and is being outgunned by the private market,” he said.

“Under this Labor government, we are effectively seeing the privatisation by stealth of our energy system in Queensland.”

In June, construction began on CleanCo’s first new renew­ables project, the 103MW Karara Wind Farm, southwest of Brisbane, which is due to finish in 2024. Asked if it had a target for new projects by 2030, a CleanCo spokeswoman said the company would “grow its portfolio of owned and operated projects in line with our strategy and driven by customer demand”.

A spokesman for Premier Annastacia Palaszczuk said Cleanco was established to ensure renewable energy remains in public hands. “Further announcements about state owned renewable energy generation will be made at the appropriate time,” he said.