Morrison govt conflicted on energy: Qld

·2-min read

The Queensland government says it will back a $373 million wind farm denied a loan by a federal government "hopelessly conflicted on renewable energy".

Keith Pitt earlier this month used his ministerial power to veto a $280 million loan to the Kaban Green Power Hub for a 157 megawatt wind farm.

The Northern Australia Infrastructure Facility had recommended the far north Queensland project receive financing.

Queensland Energy, Renewables and Hydrogen Minister Mick de Brenni said the state will invest $40 million to upgrade transmission lines in support of the Kaban project.

The investment will help provide certainty because the federal government is "hopelessly conflicted" on renewable energy, he said.

"The Morrison government turned their back on this project - rejecting the 250 jobs it will create for workers," Mr de Brenni said in a statement on Friday.

"Federal Minister for Northern Australia Keith Pitt personally vetoed the NAIF loan in an attempt to block more renewable energy in Queensland.

"The Morrison government is hopelessly conflicted on renewable energy, even going so far as to ignore large-scale storage in the region to veto Kaban under the guises of dispatchability.

"Federal minister Keith Pitt's veto announcement just doesn't stack up."

However, Mr Pitt pointed out that the project does not include battery and only consisted of the wind farm and transmission line upgrade.

The minister said without a battery the project was not dispatchable, so it didn't meet federal government policy requirements.

"As I've said from the outset, the company has always had the ability to seek finance from other outlets and they've taken up that option," he told AAP.

"Again we see the Queensland Labor government funding non-reliable electricity generation in the state."

Earlier this month, Mr Pitt would not say how much battery storage was needed for him to consider the project to be "dispatchable".

"How big is the battery? Is it an AA battery, is it a very large battery, is it a small battery, does it run one house," Mr Pitt told Sky News.

NAIF has previously loaned money to multiple energy projects, including gas, hydro power and a hybrid solar and gas plant.

The Kaban project has been put forward by Neoen, the company responsible for South Australia's Hornsdale Power Reserve - the largest lithium-ion battery in the world.

Kaban has a power purchase agreement with Queensland government-owned CleanCo to support the state's target of 50 per cent renewable electricity by 2030.

The federal government has no renewable energy target, with the coalition instead focused on ensuring power supply is reliable.