Federal Resources Minister Keith Pitt has vetoed public funding of a wind farm and battery project at Kaban in far north Queensland, as it is ‘inconsistent with the objectives and policies of the Commonwealth’.
The Kaban green energy hub was scheduled to be constructed at a location 80km south-west of major regional town Cairns. Federal Government agency Northern Australian Infrastructure Facility (NAIF) had previously approved $280 million in funding for the initiative to go ahead.
Proponents Neoen Australia had estimated this would deliver up to $461 in electricity savings for consumers in far North Queensland for the duration of the project, which had initially landed them approval for public funding. The project was set to include a 157 MW wind farm and 100 MW battery, a 320km transmission line upgrade and 247 jobs during construction as well as five ongoing positions.
Mr Pitt retrospectively reviewed the proposal, and delivered a rejection notice to NAIF chief executive Chris Wade that vetoed the approval.
“I am satisfied that providing the financial assistance would be inconsistent with the objectives and policies of the Commonwealth Government,” he wrote.
“Therefore I am issuing a rejection notice in relation to the Kaban Green Power Hub proposal notice.”
Mr Pitt said his satisfaction was based on the fact that:
- The project will not provide new reliable, dispatchable and firm generation capacity to the National Electricity Market
- He was not convinced that the project will result in lower energy prices
Decision prompts backlash
There has been plenty of backlash surrounding the decision, with prominent Australians taking to social media to voice their opposition. Here were some of the reactions from social media to Mr Pitt’s decision:
- Federal Labor MP Chris Bowen: ‘Good morning to everyone except Keith Pitt, who let his prejudice against renewable energy block 250 new jobs for North Queensland.’
- Queensland Senator Murray Watt: ‘Federal Minister Keith Pitt uses an unprecedented veto power to block NAIF funding for a new wind farm in Far North Qld. The Morrison Government’s ideological war on renewables sacrifices 250 regional jobs & $461 million in power price savings. Shameful.’
- Australia’s foremost coral reef scientist Professor Terry Hughes: ‘I wonder what reception this idiocy from Australia will receive at international climate talks?’
Neoen Australia made a statement saying that they were disappointed, but remained committed to the construction of the hub. It is likely they will seek out private funding.
Wind projects still gathering steam
It is still hoped that the Cairns wind and battery hub will proceed under a private funding model. In the meantime, there has been plenty of advancements which are cause for optimism, including:
- Wind projects in Australia breaking the 1GW capacity barrier in 2020
- Australia’s first offshore wind farm on track for completion by 2028
- There are currently 98 renewable energy projects around the country that are in construction or due to start soon, including wind, solar and bioenergy.
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