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Queensland Government Announces CleanCo: Renewable Energy Electricity Generator

Written by Solar Trust Centre Team | Dec 19, 2018 10:31:59 AM

The Queensland Government has announced plans for a third Government owned energy company called ‘CleanCo’. The existing two are CS Energy and Stanwell.

According to the fact sheet, CleanCo will be established to “meet a key policy objective of 50 per cent renewable energy generation capacity by 2030 under the Queensland Renewable Energy Target (QRET)”.

What is Queensland’s CleanCo?

When CleanCo starts trading in the National Electricity Market (NEM) by mid-2019, it will be a publicly owned clean energy generator. This means that Clean Co will be involved in the building, constructing, owning and maintaining of renewable energy generation.

They state their four main goals on the Queensland Treasury site:

  1. Putting downward pressure on electricity prices
  2. Supporting jobs and a just transition for workers
  3. Growing Queensland’s renewable energy industry
  4. Maintaining energy security

Queensland homeowners will be most interested in their goal to reduce energy prices and ensure a more reliable energy supply in Queensland:

“Once established, CleanCo will increase competition in the National Electricity Market (NEM) and put downward pressure on wholesale electricity prices — delivering benefits to individual households and large commercial and industrial customers.

The Government’s preliminary analysis indicates CleanCo should reduce wholesale electricity prices by on average around $7/MWh, which is expected to initially translate to an estimated $70 per annum saving for the average household.”

CleanCo will also create more jobs in the renewable energy industry. This will start with jobs needed to deliver 1000MW of new renewables including solar, wind and hydro power.

Premier Annastacia Palaszczuk stated, “Renewable energy is a critical part of Queensland’s future which is why we are making an initial injection of $250 million to progress the development of new, public renewable energy generation assets.” Growing the Queensland renewable energy industry will help the state get on track to meet their 50% goal by 2030.

Check out the CleanCo fact sheet for more information.