MEDIA RELEASE: 2026 Queensland Budget
MEDIA RELEASE
Queensland Government Pumped Hydro Commitment Recognises the Importance of Energy Backup for Queensland
The Capricornia Pumped Hydro Project welcomes the Queensland Government’s budget support for energy infrastructure that strengthens the reliability, affordability and security of the state’s electricity system.
Following QIC’s state-wide assessment of pumped hydro opportunities, today’s budget confirms Capricornia Pumped Hydro is the recommended project to advance to the next stage of negotiations. This decision recognises the project’s strong technical merit, deliverability and strategic importance to Queensland’s energy future.
This budget reaffirms the Queensland Government's commitments to progressing smaller more manageable pumped hydro through the Queensland Energy Roadmap. Most importantly, it highlights the important role of private sector investment in delivering major infrastructure without adding upfront cost to Queensland taxpayers.
Project CEO John Carr said that the announcement was a vote of confidence in a simple principle Queenslanders instinctively understand.
"The best energy systems have backups," Mr Carr said. "Whether it's a home generator during a storm, a spare tyre in the car, or backup systems in a hospital, the best systems always have a contingency and Queensland's energy system should be no different.”
“As Queensland’s population and industry grow, we need energy infrastructure that not only meets demand but strengthens resilience when the system is under pressure.”
"This isn't about replacing what we have. It's about strengthening it," Mr Carr said. “The Capricornia Pumped Hydro Project will provide large-scale energy storage and fast-response backup capacity for Queensland’s electricity network, supporting the grid during peak demand, generator outages and maintenance periods.”
Capricornia Pumped Hydro is located 80km west of Mackay in Central Queensland and will deliver 750MW of power, with long duration storage capacity of 12 GWh or around 16 hours of storage.
Importantly, the project will be delivered through private capital investment, meaning no upfront burden on Queensland taxpayers, while still delivering long-term public benefit.
“This is exactly the kind of infrastructure that can be delivered by the private sector when governments create the right policy settings,” Mr Carr said. “It delivers jobs, energy security and economic growth without relying on public funding.”
The project is expected to create around 650 construction jobs and 65 ongoing operational roles.
"Up to 80% of the capital invested in Capricornia Pumped Hydro will go into Queensland pockets. Pumped hydro is dams, tunnels and heavy civil works, the kind of infrastructure that Queenslanders have been delivering for generations.”
Mr Carr said. "The economic benefits will be felt well beyond the construction site, supporting local suppliers, small businesses and communities across the region."
But beyond energy and economic outcomes, the project will also deliver significant regional infrastructure investment.
Road upgrades required for the Project will improve connectivity between the Isaac Region and the Pioneer Valley; an outcome Mackay Regional Council have long identified as important but have been unable to deliver due to the scale and cost of investment required.
“This project is not just energy infrastructure,” Mr Carr said. “It provides a safer and more resilient transport option between the Isaac Region and the Pioneer Valley, particularly when the Eungella Range is closed.”
“The Queensland Government’s announcement reflects a clear focus on pragmatic and economic energy projects, private investment, and real benefits for regional communities.”
Capricornia Pumped Hydro looks forward to continuing to work with the Queensland Government to deliver critical long-duration storage capacity that will strengthen Queensland’s energy system into the future and acknowledges QIC’s important work to progress pumped hydro.
“This is the kind of project Queensland needs to support an affordable, reliable and stable energy system,” Mr Carr said. “It strengthens the grid, supports regional jobs, and provides the backup capacity Queensland will rely on for decades to come.”
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