Queensland has launched an AUD 200 million fund to support energy projects in the North West Minerals Province
The fund will consider generation, gas, battery storage, and power system support projects
Successful proposals must improve energy affordability and reliability and deliver benefits or reach commercial operation by 2030
Queensland Investment Corporation (QIC) is inviting proposals for new energy generation, gas, and battery energy storage systems (BESS) projects under the AUD 200 million North West Energy Fund (NWEF). Eligible projects must be able to deliver more affordable and reliable energy across the state’s North West region, according to the QIC.
The NWEF fund, a key initiative under the Queensland Energy Roadmap, aims to support localized energy solutions and unlock economic development opportunities in the North West Minerals Province (NWMP).
Under the call for proposals, eligible proposals may include new power generation projects, gas and battery energy storage systems, and broader initiatives that support the North West Power System.
Proposals will be assessed for various parameters, including technical, competition, market, timing, consumer, efficiency, supply diversity, partnership, and commercial parameters. Individual investment opportunities are not expected to satisfy all factors to qualify for support from the fund.
The call for proposals follows a market-sounding process conducted by QIC in April this year, the alternative investment manager established by the Queensland government in 1991, with developers, generators, electricity distributors, suppliers, customers, and local governments in and around Mount Isa, Cloncurry, Julia Creek, and Richmond.
According to QIC, the market sounding exercise highlighted structural challenges in the NWPS related to energy affordability and reliability due to limited shared infrastructure, coordination issues, and a lack of competition in some parts of the market. Therefore, a coordinated regional approach to attract investment and support future energy growth was required, it adds.
According to QIC’s investment guidelines, proposals should either deliver benefits or reach commercial operations by 2030 and demonstrate lower delivered power costs in the North West Minerals Province (NWMP) and surrounding areas.
In addition to advancing local energy solutions, the program will assess operational and infrastructure requirements needed to coordinate and reduce risks for future investments in the region.
The findings, explained QIC, are expected to help inform planning for the CopperString Western Link between Hughenden and Mount Isa.
QIC Head of Global Infrastructure Ross Israel said feedback from the market-sounding process had helped shape the fund and identify opportunities to connect private capital with priority projects.
Israel stated, “QIC’s role is to turn the objectives of the Queensland Energy Roadmap into investable projects that deliver reliable, affordable and sustainable energy and the North West Energy Fund presents a clear pathway for QIC to partner on near-term opportunities.”
Queensland aims to meet rising energy demand by adding up to 600 MW of new gas-fired generation, up to 6.8 GW of wind and large-scale solar, and up to 3.8 GW of storage by 2030. According to the Queensland Energy Roadmap 2025, the state expects to add another 4.4 GW of wind and solar by 2035.