Queensland Utility Cancels New Wind Project, Signs PPA with Established Farm
A Queensland energy utility has canceled its plans for a new wind project and instead has signed a power purchase agreement (PPA) with an established wind farm. This decision comes as CleanCo announced it would not proceed with the 360 megawatt (MW) Moah Creek wind project.
Changes in Queensland’s Energy Strategy
CleanCo’s decision reflects a shift in alignment with its current energy strategy amid evolving market conditions. The state government has scrapped renewable energy targets and pledged to continue coal usage until 2050. This backdrop has led CleanCo to focus on existing renewable sources rather than new ones.
Details on the PPA with Kennedy Wind Farm
In lieu of the Moah Creek project, CleanCo has signed a long-term agreement with the Kennedy Energy Park. This wind farm, established nearly a decade ago by Windlab and now owned by Andrew Forrest, will provide CleanCo with 32 MW of power. The deal covers 75% of the total output from the 43 MW wind section, set to commence in 2028.
- Wind Project: Kennedy Energy Park
- Power Output: 32 MW
- Duration: 10 years
- Capacity: Supports up to 20,000 homes
- Start Date: 2028
Impact on the Moah Creek Project
The Moah Creek project is still poised to move forward, with its developers, Central Queensland Power, seeking the necessary financing. Moah Creek previously won support through the federal government’s Capacity Investment Scheme. However, its proximity to the abandoned Moonlight Range project, which faced political challenges, raises concerns about its future.
Queensland’s Renewables Landscape
The renewables industry in Queensland is currently facing a turbulent phase. Many wind, solar, and battery projects are required to resubmit planning proposals as the state government reassesses its policies. Four significant renewable projects are under review, causing uncertainty within the sector.
The Future of Renewable Energy in Queensland
CleanCo’s decision reflects a broader trend in Queensland’s energy roadmap. This document emphasizes the redirection of funding towards coal and gas, explicitly excluding new large renewable projects until 2035. The decision to abandon the Moah Creek wind project has sparked discussions about the future of renewable energy in the region.
Investment in Hughenden
Hughenden is emerging as a key location in Queensland’s clean energy expansion, hosting potential projects and the significant Copper link transmission line. However, doubts remain about whether the government will fulfill its claims about making Hughenden a “strategic energy hub” in light of its current policies against large renewable developments.
The Kennedy Energy Park, recognized as the world’s first behind-the-meter solar, wind, and battery project, began operations in 2021. Its successful integration into the national grid paves the way for future renewable developments in Queensland. The facility, which includes solar and battery capacity, highlights the challenges and opportunities within the renewable energy market.
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