Energy transformation to power Queensland’s next decade of prosperity

Momentum for economy-wide decarbonisation internationally and across private and public sectors is growing.

Over half of the ASX’s market capitalisation - circa $1 trillion - now has net zero commitments.

The proportion of ASX 200 companies committing to net zero emission targets has increased three-fold since 2020.

Like us, they recognise global energy transition as the largest investment opportunity of our generation.

With approximately 25 per cent of Australia’s electricity currently generated from renewable energy, the National Electricity Market needs to double its variable renewable capacity every decade by 2050 to meet the nation’s growing energy demands amidst the accelerating closure of traditional generators.

Policy developments in the years ahead will significantly influence the trajectory of this transformation.

Market reforms are underway across federal and state jurisdictions, while the regulator holds a watching brief on the capacity mechanism, safeguard mechanism and transmission congestion.

I can’t understate how critical these decisions will be.

An increasingly competitive utility-scale renewables sector requires increasing due diligence to differentiate quality from sub-par assets and deliver investors the confidence to commit capital.

The Commonwealth’s new renewable energy targets will drive A$76 billion in total investment, of which over A$50 billion will be private investment.

However, risk of delay in transmission build-out presents a risk to project investors in constrained parts of the grid.

For its part, the Queensland Government has committed $19 billion over the next four years to deliver transmission and firming infrastructure, laying the foundation for institutional investment.

These commitments will unlock some $17 billion in private sector opportunities for new wind and solar farms in Queensland.

Further, the back-to-back challenges of a global pandemic and now war in Europe have placed a heightened focus on the clean energy supply chain.

Our abundant reserves of vanadium, cobalt, copper and rare earth elements are the key to accelerating the development of clean energy technologies like solar panels, battery storage and electric vehicles.

This presents yet another significant opportunity for Queensland, but only if local projects are production ready, commercially viable and globally competitive.

To take advantage of our regions rich in critical minerals, world-class processing facilities and globally-focussed ports, QIC now manages the $100 Queensland Critical Minerals and Battery Technology Fund on behalf of the State.

We are in the enviable position to grow our capabilities right through the supply chain from pit to product. By leveraging QIC’s expertise, we can position our state at the front of the queue with the capacity and capability to meet global demand for decarbonisation.

Queensland has a clear vision to maximise the momentous opportunities that come with a clean energy future. It is our role in economy-wide decarbonisation and energy transformation that will power Queensland’s next decade of prosperity.