Exposed: The Actual Cost of Queensland’s Abandoned Hydro Project Surpasses $36 Billion

After winning the elections, Queensland’s newly elected Premier David Crisafulli criticized the former Miles government for not being transparent about the escalating costs of the proposed Pioneer-Burdekin pumped hydro scheme. The cost was disclosed to be $36.77 billion, significantly higher than the original estimate of $12 billion—triple the initial projection.

Within the first week of assuming office, Deputy Premier Jarrod Pieter Bleijie announced the termination of the project.

“I find it completely and utterly implausible that the former government wouldn’t have known about that,” Crisafulli expressed in an interview with ABC Radio on Nov. 4.

Prior to the elections, former Labor Premier Steven Miles acknowledged the project’s substantial cost as a crucial element of Labor’s renewable energy strategy, emphasizing its long-term return on investment.

Meanwhile, Crisafulli visited Eungella on Nov. 3 to meet with landholders affected by the project’s land resumptions.

“What they’ve been through was horrendous,” he empathized.

The LNP government’s strategy is to concentrate on constructing several smaller pumped hydro plants at yet-to-be-disclosed locations without providing an estimated cost.

“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 asserted.

The premier also pledged to progress the Borumba pumped hydro project near the Sunshine Coast at a reasonable cost, different from the previous government’s allocated $6 billion, which escalated to $14 billion.

The Energy Council of Australia’s communications advisor, Tom Monaghan, expressed that the LNP’s approach might have short-term advantages in terms of affordability and stability. Nonetheless, it could potentially clash with Australia’s broader renewable energy and emissions objectives.

“While this approach reduces upfront investment, it is yet to be seen if smaller projects will deliver the same capacity. Smaller, distributed projects could also introduce additional grid-balancing complexities,” Monaghan noted.

“While Crisafulli’s administration supports Australia’s net-zero goal by 2050, it remains sceptical of the feasibility of interim state-specific renewable targets.”

AAP has contributed to this article.