Work is underway to identify prospective sites for new pumped hydro projects in Queensland after the newly installed state government confirmed it has dumped plans to build a 120 GWh facility in the Pioneer Valley west of Mackay.
Queensland Premier David Crisafulli said the Pioneer-Burdekin pumped hydro project, a centrepiece of the previous government’s renewable energy plan, has been formally stopped after a major cost blowout.
“The Pioneer Burdekin pumped hydro project will not be going ahead,” he said, adding that it offered no value for money.
“It never stacked up financially, it never stacked up environmentally,” he said.
The project was originally slated to cost $12 billion (USD 7.91 billion) but a treasury analysis completed by government entity Queensland Hydro shows the cost would increase to $36.77 billion.
Crisafulli said the state government would instead look to build multiple, smaller pumped hydro plants at yet-to-be-decided locations.
“We have to find a way to deliver smaller, more manageable pumped hydro because it’s important if you’re going to firm up renewables, you need that,” he said.
In addition to identifying sites for new projects, Crisafulli said his government has a “laser-like focus” on finding an affordable way to deliver the proposed 2 GW / 48 GWh Borumba pumped hydro project being developed west of Gympie in Queensland’s southeast.
The former government budgeted $6 billion towards the project, with the total cost estimated to be $14.2 billion. Pending successful planning and environmental approvals, main works are scheduled to commence in 2026 with the project targeting first power by 2030.
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