An innovative north Queensland renewable energy project, which will combine solar and hydro power technology, is a step closer to reality with preliminary construction beginning this week.
The first stage of Genex's power station, a 50-megawatt solar farm built on the site of the disused Kidston gold mine, has been green-lit and was expected to be operational by the end of next year.
The Queensland government signed its first formal Solar 150 program deed of agreement with Genex in Townsville on Thursday.
That agreement set a 20-year price guarantee on the power generated at Kidston, which was able to shore up investors and guarantee construction.
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But it was the second stage – a 270-megawatt hydro storage generator – that had many within the Palaszczuk government excited, particularly in the light of Labor's 50 per cent renewable energy target by 2030.
During times of adequate sunlight, solar energy would be used to not only add power to the electricity grid, but also to pump water from one dam to a second, higher elevated dam.
At times of peak demand, or when sunlight was not available, water would be released through turbines into the lower dam to act as a hydro electricity generator.
Genex executive director Simon Kidston said that pump storage stage would have a "three-year build" before it was operational.
"We anticipate financial close for that project by the end of next year," he said.
"So, this time next year, we believe we'll be in a position to commence construction for the pump storage hydro project."
The project's feasibility study showed the approach could provide the same grid stability as a coal-fired power plant, as it would be able to ramp up to its full generation capacity within about 30 seconds.
Mr Kidston said he hoped to have the pumped storage project up and running by 2021.
"Energy can be stored when it's not required and dispatched when it is required," he said.
"So, for example, if the sun's not shining because of weather events, the Kidston pump storage hydro project can generate very, very rapidly to meet any demand in the market."
Energy Minister Mark Bailey said "large scale construction" of the first stage would begin in the second week of January.
"It's great to see the proponents are not mucking around, they're getting on with this," he said.
"The project will be finished construction in late 2017; this is great news for north Queensland and the north Queensland economy."
Mr Bailey said 88 workers would be employed to construct the first stage of the project.
"Its second stage includes an additional 270 megawatts of capacity as well as a 1500 megawatt-hour hydro storage facility," he said.
Mr Kidston said, upon completion, the storage project alone would have the ability to use solar energy to power 100,000 north Queensland homes, even during the evening peak.
"By providing storage ability the farm will be able to play an important role in providing a consistent, secure electricity supply to regional Queensland," he said.
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