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The state plan – unveiled in September – will require significant private investment if Prime Minister Anastacia Palaszczuk’s plan for 22 gigawatts of new renewable projects to be built at an estimated cost of $62 billion goes ahead.
The renewable energy hub – to be renamed the Capricornia Energi Hub – is targeting first generation by the end of the decade. Queensland state-owned CS Energy earlier this year signed an agreement to consider options such as a power purchase agreement, equity financing and project operations.
The deal deepens CIP’s roots in Australia, which is fast emerging as a key market for billions of dollars of capital.
CIP is one of a growing number of foreign companies looking to expand their presence in Australia to take advantage of the federal government’s energy transition and commitment to net zero by 2050.
CIP’s South Star offshore wind project is expected to generate 2.2 gigawatts and help replace EnergiAustralia’s Yallourn coal-fired power station, which is due to close in 2028.
Although it is still years away from producing zero-emissions energy, the Victorian Government has earmarked Star of the South as a front-runner in its goal to generate around 20 per cent of its energy needs from offshore wind within a decade.
Federal Energy Minister Chris Bowen this week named Gippsland in Victoria as the first region likely to allow a zero-emission power source, boosting the Star of the South generation schedule.
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