Queensland LNP Scraps Labor’s Hydro Project

Shortly after taking office, Queensland’s Liberal National Party (LNP) Deputy Premier Jarrod Pieter Bleijie scrapped the previous Labor government’s ambitious multibillion-dollar Pioneer-Burdekin pumped hydro scheme.

In a social media announcement, Bleijie declared, “Getting down to business. This evening, I signed letters to Queenslanders, confirming the Crisafulli LNP Government has cancelled Labor’s Pioneer Burdekin Pumped Hydro Hoax.

“We’ll now work with locals to right the wrongs of the former Labor government.”

The Labor government floated the project in 2022 without undergoing detailed financial, engineering, or environmental investigations prior to its announcement.

Premier David Crisafulli, during his campaign, vowed to halt the planning of the proposed 5 gigawatt Pioneer-Burdekin pumped hydro scheme, which aimed to build a large energy storage dam in central Queensland.

Experts Warn of Tensions Ahead

Tom Monaghan, communications advisor at the Energy Council of Australia, noted that the LNP’s decision could offer short-term benefits in affordability and stability but might create tensions with Australia’s broader renewable energy and emissions targets.

The LNP characterized the Pioneer-Burdekin project as an unsustainable financial burden, with Crisafulli condemning it as a “multi-billion-dollar fantasy” likely to result in higher energy costs for Queensland residents.

To address escalating costs, the LNP will pivot towards smaller-scale, more affordable hydro projects throughout the state.

By pursuing these smaller hydro initiatives, the LNP aims to diversify investment risk and develop scalable, cost-effective energy storage solutions.

In an analysis, Monaghan remarked, “While this strategy reduces initial investment, its effectiveness in delivering similar capacity remains to be seen. Smaller, distributed projects may introduce additional grid-balancing challenges.

“It will be interesting to observe if this decision prompts AEMO to adjust the Optimal Development Path in the ISP due to this shift.”

Reevaluating Renewable Energy Ambitions

Monaghan also highlighted that while the Crisafulli administration supports the national objective of achieving net-zero emissions by 2050, it casts doubt on the practicality of setting interim renewable targets at the state level.

The LNP has indicated its intent to scale back the ambitious renewable energy goals set by the Labor government, which aimed for 70 percent renewable energy by 2032.

The party plans to adopt a “balanced approach” where renewable energy complements, rather than dominates, the energy landscape.

This strategy will blend fossil fuel generation with selected renewable projects, prioritizing grid reliability and economic stability, particularly in rural areas reliant on coal and gas employment.

The LNP is open to hybrid projects merging renewables with traditional energy sources to effectively balance emissions reductions with economic considerations.

“Nonetheless, energy experts argue that by deprioritizing renewables, the state risks missing opportunities to invest in cost-competitive renewable technologies that are increasingly scalable and affordable, potentially hindering progress towards broader national decarbonization efforts,” Monaghan stated.