Queensland launches $200 million fund to partner on private sector renewable solutions

The Queensland government has launched a $200 million fund to support the private sector in delivering “bespoke” renewable energy generation, battery and microgrid projects across the state’s northwest.

March 24, 2026 David Carroll

Image: Queensland Treasury

The Queensland Investment Corporation (QIC) has started market sounding for the $200 million (USD 138.7 million) North West Energy Fund, established by the state to support energy generation and storage projects to be delivered in partnership with the private sector.

The fund was first announced by the Queensland government last year as part of changes to the Copperstring transmission project, a plan to build almost 1,000 kilometres of high voltage power lines between Townsville and Mount Isa, connecting towns and mines in the state’s northwest to the National Electricity Market for the first time.

With costs for the multi-billion-dollar project on the increase, the Queensland government opted to prioritise the eastern link of the transmission line, with major construction of the Townsville to Hughenden stretch targeted for 2028 and completion by 2032, pending federal approvals.

Construction plans for the western link, from Hughenden to Mount Isa, were deferred with the North West Energy Fund established to explore and develop local generation and storage solutions capable of improving energy supply in the region.

Queensland Energy Minister David Janetzki said the initiative will be used to partner with the private sector on renewable energy solutions with a focus on developments that can be fast-tracked while options to deliver the western link are developed.

“This fund ensures communities west of Hughenden are supported as work continues on the accelerated delivery of the project’s eastern link,” he said, adding that the strategy aims to improve energy affordability and reliability in the northwest sooner than a purely large-scale transmission approach could achieve.

Janetzki said more than 20 organisations have already engaged in the market sounding process, with energy developers, generators, electricity distributors and suppliers, users as well as local councils expected to participate.

QIC Head of Global Infrastructure Ross Israel said the fund creates the conditions for projects to proceed and supports investment confidence.

“Through the North West Energy Fund, we have a clear and credible pathway for investors to coinvest with us on projects which will be identified as a priority in the region and which leverage the need from customers for flexible and pragmatic solutions in the near term,” he said.

“For developers, generators, customers and suppliers with an interest in the northwest minerals province, there is now the opportunity to leverage a dedicated fund supporting investment in and around areas like Mount Isa, Cloncurry, Julia Creek and Richmond.”

Queensland Renewable Energy Council (QREC) Chief Executive Officer Katie-Anne Mulder welcomed the initiative, saying targeted investment in regional energy infrastructure and generation projects will help ensure communities in remote and regional Queensland benefit from the clean energy transition.

“The North West Energy Fund is a practical example of how the Energy Roadmap can translate into real projects that support local communities, strengthen energy security and unlock economic development in regional Queensland,” she said.

“Renewable energy, supported by storage and new transmission, is essential to delivering reliable and affordable electricity for homes and businesses across the state.”

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