Queensland Wind Farm Cancellations Impact Renewable Energy Investments
The Queensland government has recently scrapped several approved renewable energy initiatives, significantly impacting investor confidence in the region. New regulations and the cancellation of pivotal projects, including a green hydrogen venture, have diminished Queensland’s appeal as a destination for renewable energy investments.
Once a leader in renewable energy, Queensland has now fallen to second place in Australia for attracting such investments, as reported by the Clean Energy Investor Group. The latest project cancellations have sent shockwaves through the investment community, raising serious concerns about the future of renewable energy in the state.
Recent Project Cancellations
This week, the state government announced the cancellation of another wind project that had already received approval. Officials cited a lack of community support, delays in planning approvals, and non-compliance with newly established “minimum project requirements” as reasons for this decision. This cancellation adds to a growing list of clean energy projects that have been halted or dismantled this year, further damaging investor sentiment. Additionally, the government has revoked renewable energy targets set by the previous Labor administration.
Shane Quinnell, head of development at Westwind, expressed his concerns on LinkedIn, stating that the decision to withdraw support for the 1.2GW Forest Wind project, located in a state forest with low biodiversity, would reverberate throughout the investment sector. He emphasised the need for the Queensland government to make a comprehensive decision regarding its commitment to renewable energy and the benefits it brings to the state.
A Challenging Year for Clean Energy
This year has proven disastrous for clean energy in Queensland, with the government cancelling two approved wind farms under dubious circumstances, including the $1 billion Moonlight Range project in May. The situation is further exacerbated by the abandonment of the state’s flagship green hydrogen project and the withdrawal of $100 million in funding for a new national battery hub.
New stringent regulations for renewable energy projects have been introduced, and a promised energy roadmap has yet to materialise, while threats to repeal established renewable energy targets loom large. These developments have caused Queensland to plummet in the rankings of preferred investment locations.
According to the Clean Energy Investor Group’s annual survey, Queensland has dropped to second place for renewable energy investments by mid-2025, a significant decline from its previous top position. Ritchie Merzian, CEO of CEIG, expressed concern over the implications of reversing previously approved projects, highlighting the importance of policy certainty and legislative clarity for attracting investment.
Impact on National Investment Landscape
The Queensland government’s unfavourable stance towards renewable energy raises questions about the future role of its government-owned corporations, which have historically been significant investors in projects and power purchase agreements (PPAs) across Australia. Rystad analyst David Dixon noted that until this year, these corporations were responsible for most new PPAs in the country.
While Merzian remains hopeful that private investors may find new opportunities in Queensland, he acknowledges the challenge of reassuring them that their investments are secure in the current climate. He stressed the urgent need to accelerate the development of clean energy in Queensland, especially as the government retracts some of its planned investments in pumped hydro.
Environmental Concerns Amid Policy Changes
Queensland’s drastic shift away from climate activism poses significant risks to the environment, as highlighted by the state government’s own reports indicating a dire ecological situation. The latest State of the Environment Report reveals that three new regional species have gone extinct in the wild, bringing the total known extinctions in Queensland to 15.
Over the past four years, an additional 114 animal and plant species have been classified as threatened, with the total now exceeding 1,000 due to rampant deforestation, native forest logging, and climate change. Natalie Frost, a nature campaigner with the Queensland Conservation Council, pointed out that Queensland has the highest deforestation rate in Australia, clearing over 300,000 hectares of forest and bushland annually, primarily for grazing.
In just one year, more than 70,000 hectares of pristine remnant forest have been bulldozed, threatening vital habitats for wildlife such as greater gliders and koalas. Meanwhile, the state government is preparing to intensify logging in Queensland’s native forests, putting iconic species that rely on old trees for hollows at risk of extinction.
