New govt reveals energy scheme’s massive cost blowout
The Queensland government has received a briefing on a multibillion-dollar pumped hydro scheme that revealed the eye-watering true cost of the project.
A controversial pumped hydro project in Queensland has been scrapped within days of the Liberal National government taking charge as it received a briefing showing a major cost blowout.
Premier David Crisafulli went to the October state election promising to cut Labor’s Pioneer Burdekin project in central Queensland, claiming it was the source of a budget black hole.
The LNP then received a briefing within 48 hours of taking office that the project’s $12 billion cost had ballooned to $36.77 billion – more than triple what was originally forecast.
“I find it completely and utterly implausible that the former government wouldn’t have known about that,” Crisafulli told ABC Radio on Monday.
Before the election, former premier Steven Miles admitted the price tag would be high for the project – heralded as the centrepiece of the Labor’s renewables plan – but would be worthwhile in the long term.
“(Pumped hydro projects) are income-generating assets that will generate a return to Queenslanders, basically forever,” he said during his second election debate with Crisafulli.
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“The capital cost, you’re right, is high, but the operational cost is very, very low, and the revenue from them is very, very high.”
Crisafulli visited the town of Eungella on Sunday to meet landholders whose properties were resumed or forcibly sold off for the project.
The premier apologised to those Queenslanders who he claimed the former government failed to consult before committing to the project.
“What they’ve been through was horrendous,” he said.
Deputy Premier Jarrod Bleijie promised on Friday to write to the almost 60 affected landowners and “work out a way forward”.
The LNP government will look to build multiple, smaller pumped hydro plants at yet-to-be-decided locations without a forecast price tag.
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“We have to find a way to deliver smaller, more manageable pumped hydro because it’s important if you’re going to firm up renewables, you need that,” Crisafulli said.
Crisafulli promised to deliver the Borumba pumped hydro project, near the Sunshine Coast, at an affordable cost.
The former government budgeted $6 billion towards the project, with the total cost estimated to be $14 billion.
Once the government decides on its list of smaller pumped hydro projects, it will unveil its plan.
Environmental advocates have called on the government to release details about its Pioneer Burdekin alternatives within 100 days.
“It’s really important that the new state government is upfront about which pumped hydro projects they’re considering,” Queensland Conservation Council director Dave Copeman said.
“Queenslanders want to know they’re serious about getting on with the energy transition, but also critically, we need to be able to assess the potential environmental impacts of their plans.”
The LNP government will hold its first cabinet meeting on Monday after ministers were sworn in on Friday.
Crisafulli said all 19 worked through the weekend to prepare for the meeting.
