Queensland Utility Adjusts Wind Power Procurement Strategy, Signs Long-Term Power Purchase Agreement with Existing Facility
2026-02-02 15:08
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Wedoany.com Report on Feb 2nd, The energy company CleanCo, majority-owned by the Queensland state government, has recently adjusted its wind power procurement plan. The company has passed on the opportunity to purchase power from the proposed 360-megawatt Moah Creek wind project and instead signed a long-term electricity purchase contract with a small wind farm that has been operating for nearly a decade.

CleanCo stated that the decision to forgo the new wind project was based on changes in the current energy market environment and aligns with Queensland's latest energy planning direction. The state recently adjusted its renewable energy development targets and plans to continue using coal-fired power until 2050. Consequently, CleanCo chose to enter into a ten-year power purchase agreement for the wind power component of the Kennedy Energy Park.

This agreement covers 75% of the power output from the Kennedy wind farm's 43-megawatt capacity, totaling approximately 32 megawatts, with supply expected to commence from 2028. This electricity can meet the needs of around 20,000 households. The Kennedy wind farm was built by Windlab a decade ago and is currently controlled by mining entrepreneur Andrew Forrest.

Queensland's Treasurer and Energy Minister, David Janetzki, endorsed the agreement, stating: "Hughenden is at the heart of our clean energy expansion." He further noted in the statement: "With the CopperString transmission project connecting the North West Minerals Province to the national grid, we are building the energy transmission pathways that will enable renewable energy from wind farms to be delivered to the areas where it is needed most."

Despite signing the new agreement, CleanCo has left open the possibility of future collaboration with the Moah Creek project. The project's current owner, Central Queensland Power, indicated that development work will continue, subject to securing sufficient funding. The Moah Creek project was previously successful in a competitive tender under the federal government's Capacity Investment Scheme.

Queensland's renewable energy sector has recently faced policy adjustments, with several wind, solar, and energy storage projects required to resubmit planning applications. The state government has also initiated review processes for four major projects. The Hughenden region currently has eight large-scale wind projects planned, five of which have not yet received development approval, along with one large-scale solar project in preparation.

The Kennedy Energy Park, as the world's first grid-connected integrated solar, wind, and battery storage project, has been operational since 2021. It is equipped with 12 wind turbines, 15 megawatts of solar photovoltaic panels, and a 2-megawatt battery storage system. The project previously had a ten-year power purchase agreement with another state-owned energy company, CS Energy, which is set to expire before CleanCo's new agreement takes effect.

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