Huge solar project in limbo as Newman pulls funding

www.smh.com.au
29 Mar 2012

The new LNP government plans to pull funding for the Solar Dawn solar research and power plant at Chinchilla. The first chance to test whether solar thermal energy can provide large-scale alternative power in Australia may be in doubt under the new LNP state government. The incoming Queensland government wants to pull out of an agreement formed by its predecessor to provide $75 million towards the $1.2 billion Solar Dawn solar research and power plant at Chinchilla, west of Toowoomba, Premier Campbell Newman said yesterday. The Solar Dawn Project is set to be one of the largest of its kind in the world.

New Queensland Premier Campbell Newman plans to cut green programs started by the previous government. Photo: Glenn Hunt Mr Newman said following the first LNP party room meeting the cost of the federal government's looming carbon tax would affect the state economy and public sector, and said Queensland would be "paying twice" if state-based climate change initiatives were not dumped. However he said the green programs set to be axed under his government could be revived if the carbon tax was scrapped. Mr Newman said during the state election campaign he wanted to dismantle Queensland's carbon reduction schemes to save $270 million for the state budget.

Solar Dawn is a 250 MW solar thermal project using sun-heated water in tubes to produce steam-driven energy, and is backed by the federal government and was supported by former Premier Anna Bligh. It is part of the federal government's Solar Flagship Program. A similar project at Moree, in New South Wales, has received federal funding under the same program. The University of Queensland has developed a $60 million research project to link to Solar Dawn.

UQ's Professor Paul Meredith, the head of the university's renewable energy research, said he was worried the LNP's decision would damage what he thought was a worthwhile project and one that provided almost 400 jobs. ''Hypothetically if the state contribution of $75 million does not flow that leaves a very big hole in the project's funding,'' Professor Meredith said. ''And I think it is anybody's guess what the Federal Government will do at that point.''

The Gillard Government has promised $475 million and the Bligh Government agreed in February this year to give $75 million in a ''conditional agreement'' to help build the huge solar thermal plant, which is scheduled to be operating by December 2015. The project must reach ''financial close'' by June 30 this year. Federal Energy Minister Martin Ferguson, speaking in Queensland yesterday, said he was surprised the new state government was considering backing out of Solar Dawn.

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