Queensland’s Energy and Jobs Plan has been enacted into law, with the passing of the Clean Economy Jobs Act (Qld) 2024 (Clean Economy Jobs Act) and the Energy (Renewable Transformation and Jobs) Act (Qld) 2024 (Renewable Transformation Act), strengthening Queensland’s position in Australia’s energy transition.
While both Acts passed on 18 April 2024, they are still yet to commence. They will commence on a day to be fixed by proclamation.
Overview
The Clean Economy Jobs Act aims to promote clean energy technologies and the reduction of carbon emissions. The main purpose of the Clean Economy Jobs Act is to reduce greenhouse gas emissions in Queensland, by legislating our emissions reductions targets. It also provides for the development of emissions reduction plans for sectors, an annual progress statement, and establishes an expert panel to provide advice on emissions reduction progress as well as efficient and cost effective ways to reduce emissions.
The Renewable Transformation Act focuses on the transition to renewable energy sources and supporting job growth in the renewable energy sector, an issue many in the industry have been grappling with for years. This Act includes measures to streamline permits for renewable energy projects, expand access to financing for renewable energy projects, and provide training and workforce development programs.
Emissions reductions and new renewable energy generation targets
This legislation confirms the emissions reductions and renewable energy generation targets in the Queensland, as follows:
Clean Economy Jobs Act, emissions reduction:
- 30% below 2005 levels by 2030;
- 75% below 2035; and
- net-zero by 2050.
Renewable Transformation Act, renewable energy generation:
- 50% by 2030;
- 70% by 2032; and
- 80% by 2035.
Job Security Guarantee and Fund
The Renewable Transformation Act also establishes the Job Security Guarantee and Fund.
The Guarantee provides security and support to affected energy workers, including training for, or access to, employment opportunities within the energy sector or another sector. The Fund both supports the Guarantee, and will ensure that a sufficient number of workers have the necessary skills to ensure the safe and reliable operation of publicly owned coal-fired power stations, to the extent the power stations are required to support the achievement of the optimal infrastructure pathway objectives.
Queensland SuperGrid
The Renewable Transformation Act also seeks to streamline Queensland’s renewable energy infrastructure, legislating the development of a Queensland SuperGrid Infrastructure Blueprint, which will, among other things, identify significant electricity infrastructure projects, describe any proposed changes to operations of Government-owned coal-fired power stations, and identify possible Renewable Energy Zones in Queensland.
This is Queensland’s first renewable energy legislation, laying the foundation for a streamlined approach to renewable energy development and generation in Queensland.
Navigating challenges and opportunities within Queensland’s renewables industry
The Queensland Government is committed to increasing the proportion of renewable energy in Queensland’s energy system, with various challenges and opportunities arising for renewable energy project proponents.
Key considerations include:
- Environmental and planning approvals – the renewable energy sector in Queensland is subject to various environmental and planning approvals at the Federal, State and local levels. These approvals are required to ensure that the renewable energy projects are consistent with the environmental objectives and planning policies of the relevant jurisdictions, and that the projects minimise and mitigate any potential adverse impacts on the environment, the community and the heritage. The environment and planning process can require significant time, cost and risk for the project developer, and requires extensive consultation and coordination with the relevant authorities.
- Securing land tenure – the success of any renewable energy project is dependent on securing land tenure for the project and ancillary infrastructure such as transmission lines, pipelines and access roads. This will often require negotiation with multiple landowners for exclusivity arrangements, investigation licences, option agreements and long-term leases. Access to some form of State owned land is often also required, which may trigger native title requirements.
- Grid connection risk – when developing clean energy projects to meet Queensland’s renewable energy targets, developers find the process of connecting to Queensland’s electricity grid, and the technical requirements for doing so, present the most significant challenges. Some of the common issues projects developers have faced connecting to the grid include: delay in achieving export at full capacity caused by issues relating to model approval on a fragile grid; a late change in reactive power support due to a change in the interpretation of grid rules by the regulator; delays in gaining full connection to the grid and significant increase in completion costs (due to an increase in supply chain costs).
Next steps
The passing of the Acts is a positive step forward in evolving Queensland into a renewables, hydrogen and clean energy focused State. As such, it is important for project proponents to understand and navigate the legal landscape of renewable energy, and to seek professional advice and assistance, when necessary, to ensure the successful approval, construction and operation of their renewable energy projects.
Please contact our team to find out how we can better assist you with your project.