Queensland releases roadmap to becoming a renewable energy powerhouse

What you need to know

• The Queensland Government has identified 12 "renewable energy zones" across the state that will form the backbone of its over $60 billion plan to decarbonise its electricity supply and meet its 80% renewable energy target by 2035. Three renewable energy zones are already under development, with nine proposed for the future.

• A total of 22 GW of new wind and solar generation will be connected into the renewable energy zones.

• Powerlink will implement a market-led, generator-pays REZ model, in its role as the REZ Delivery Body.

• Legislation isbeing developed to support the draft roadmap.

Renewable Energy Zone Roadmap

Twelve potential renewable energy zones have been identified, including three in-flight REZs (i.e. already progressing under the National Electricity Rules, which may be converted to a declared REZ in the future) and nine potential declared REZs.

Based on the draft roadmap, it appears that the Queensland approach to REZ development will differ markedly to that adopted in the NSW:

• First, this approach is led by a government owned corporation, with the transmission build-out being undertaken by Powerlink. At this stage it appears that transmission development will not be open to the private sector on a contestable basis.
• Second, there is no mention of revenue contracts being offered to connecting applicants to de-risk their projects. Applicants will, however, benefit from a more streamlined and coordinated connection process (details remain to be seen).

Developing the declared REZs

Each of the nine potential declared REZs will be developed through four core stages:

• planning
• declaration
• construction and operation
• commissioned

Stage 1: Planning

The roadmap provides the indicative location, size and timing of each potential REZ to support early engagement between developers and the nominated REZ Delivery Body, Powerlink.

The roadmap will be updated every two years along with the Government's separate "SuperGrid Infrastructure Blueprint".

Stage 2: Declaration

The Minister will declare a REZ under recommendation from Powerlink.

The declared sections of the transmission network will be managed differently to the "open-access" connection regime under the National Electricity Rules. In particular, the connection of multiple projects will be streamlined and coordinated by Powerlink.

Information regarding the size, target technology and access principles of the declared REZ along with community engagement requirements will be released in a REZ Management Plan, which will be finalised through subsequent consultations.

Stage 3: Construction and operation

Powerlink will connect generators to the declared REZ over time in line with the related REZ Management Plan.

Stage 4: Commissioned

The REZ coordination arrangements will be in operation for 15 years. After this period, the connected projects would operate under the existing regime applying to other generators connected in Queensland.

Paying for the declared REZs

与声明的资源文件格式相关的成本将recovered from REZ-connected generators as part of their connection and access agreement with Powerlink, with a further decision by the Queensland Government on any residual costs associated with the declared REZ.

Next steps

New Queensland laws are being developed to support these stages of development. The draft Energy (Renewable Transformation and Jobs) Bill is scheduled for introduction to Parliament in late 2023.

The draft roadmap is now open for consultation.

Respondents have until Friday 22 September 2023 to share their views.

Authors:Dan Brown, Partner; Andre Dauwalder, Counsel; Ryan Pieszko, Associate and Nikita Summers, Graduate.