The Queensland Government’s Pioneer-Burdekin Pumped Hydro Project has recently achieved a significant milestone, collecting over 5 kilometers of core samples. While this development marks progress in the state’s efforts to create a long-duration energy storage solution, the project’s escalating costs and long development timeline have sparked concerns about its suitability for supporting Queensland's energy transition.
The Pioneer-Burdekin project, located approximately 75 kilometers west of Mackay in the Pioneer Valley, is intended to store excess energy generated from household solar systems. This energy would be used during nighttime and peak demand periods when solar and wind resources are insufficient. However, as the project advances, questions are being raised about whether pumped hydro is the most effective and efficient means of achieving Queensland's renewable energy goals.
Originally estimated at $12 billion, the project’s costs have reportedly ballooned to $18 billion within just two years. Such a significant cost increase has drawn criticism from various quarters, including Federal Member for Capricornia Michelle Landry, who has highlighted the lack of transparency around the total taxpayer burden and potential environmental impacts. Landry expressed skepticism about the project's financial feasibility, especially given the substantial cost overruns.
Adding to the controversy, LNP Candidate for Mirani, Glen Kelly, pointed out the potential impact on Queenslanders' energy bills. "We’ve seen reports that the project has already blown out from $12 billion to an extraordinary $18 billion. How much will families be paying on their energy bills to cover that blowout?” Kelly questioned. This concern underscores the broader debate about whether the high capital expenditure required for pumped hydro projects is justified, especially when considering alternative technologies that may offer more cost-effective and timely solutions.
Pumped hydro energy storage, while capable of providing large-scale, long-duration storage, requires extensive infrastructure and long lead times. Critics argue that these projects may not be the most agile or economically viable option in the fast-evolving energy landscape. As Queensland seeks to meet its renewable energy and emissions reduction targets, the prolonged development timeline and substantial financial commitments associated with pumped hydro projects like Pioneer-Burdekin could hinder the state’s ability to adapt to emerging energy technologies.
Despite these concerns, the Queensland Government remains committed to the Pioneer-Burdekin project, viewing it as a key component of the state’s renewable energy strategy. Premier Steven Miles emphasized the project’s potential to create jobs and stimulate the local economy, while Energy and Clean Economy Jobs Minister Mick de Brenni pointed to the benefits of lower electricity bills and more affordable energy in the long run.
Queensland Hydro CEO Kieran Cusack also stressed the importance of the recent milestone, noting that it will contribute to a thorough assessment of the project site. However, as the project moves forward, the escalating costs and the viability of pumped hydro as a solution to Queensland’s energy needs will likely continue to be contentious issues. The Pioneer-Burdekin Pumped Hydro Project, while promising, may ultimately face significant challenges in delivering on its ambitious goals.