Projects in Queensland, While Policy Waffles
Updated: Please see below.
If you’ve been following Australia’s renewable energy landscape, you’d be forgiven for being a little confused. On one hand, we’ve seen bureaucratic foot-dragging—most recently, Queensland’s decision to stall new renewable energy connections until 2026. On the other hand, two major wind farms have just been approved by the same government. That’s right. Just weeks after we were told to expect delays and reviews, we’re now watching projects roll forward again. Welcome to the world where politics and investing collide — and rarely align.
The recent approvals for the 412MW Lotus Creek Wind Farm and the 228MW Wambo Wind Farm Stage 2 (1) are a reminder of an enduring truth: investors should act on what governments do, not what they say.
A Quick Recap: The Hold-Up
In April, the Queensland Government hit pause on new renewable connections to the grid, citing capacity constraints. The move, covered in a previous EnviroInvest blog, sent shockwaves through the sector. Developers were told that no new large-scale wind and solar projects could connect to the grid until 2026. It felt like a sucker punch to a state that had been loudly championing its clean energy ambitions under the Queensland Energy and Jobs Plan.
At the time, it looked like a troubling signal to investors: is Queensland as committed to its 70% renewable target by 2032 as it claims?
And Now: Green Lights All Round?
Apparently, yes. Because now we’re seeing approvals roll in again. Most notably for Andrew Forrest’s Squadron Energy projects at Lotus Creek and Wambo.
According to the Australian Financial Review, Wambo Stage 2, located near Jandowae in southern Queensland, is expected to power around 72,000 homes once operational. Meanwhile, Lotus Creek, northeast of Rockhampton, is forecast to deliver power to 244,000 homes and create up to 400 construction jobs.
The contradiction is hard to ignore. These approvals come after the announcement of connection delays. But they’ve been framed as ‘shovel-ready’ projects—those already deep into planning and regulatory processes. They aren’t trying to join the grid tomorrow. Instead, their approvals are a signal that the government is still backing long-term development, even if near-term logistics remain murky.
What’s Really Going On?
This isn’t a backflip. It’s a classic political sidestep. The Queensland Government is trying to manage two realities:
The engineering challenge—a grid not yet ready to accommodate the full ambition of the energy transition.
The political optics—a growing expectation from voters and investors that clean energy isn’t just aspirational, it’s urgent.
Rather than pause all progress, it appears Queensland is selectively pushing forward projects it deems ready to roll, while using the broader “grid capacity” narrative to manage expectations.
For investors, this reinforces the importance of understanding which projects are truly ready and which ones are speculative. Policy noise is just that… noise. What matters is execution.
The Forrest Factor
Andrew Forrest, never one to let a government stutter slow him down, has been especially vocal about Queensland's earlier decision to delay grid access. But instead of walking away, his company has pushed ahead with these two major wind farms. This is a strategic play. Not just to power homes, but to position Squadron Energy as a key player in Australia’s renewable infrastructure.
It’s also a reminder that big capital often sees through the political fog. Forrest’s investment is not a bet on smooth policy, it’s a bet on long-term structural demand for clean energy.
The NSW Comparison
All of this comes in the wake of a more coherent push from New South Wales, which recently announced a fast-tracked rollout of clean energy zones. As we noted in our earlier blog, NSW appears to be accelerating, not hesitating. That comparison puts more pressure on Queensland to match its ambition with action.
Investors watching both states will take note: announcements are one thing. Project approvals, construction, and delivery are another. Right now, NSW looks streamlined, while Queensland looks conflicted—but still moving.
The Investment Takeaway
For anyone looking at the energy transition from a capital allocation lens, the lesson here is clear. You invest in what is done, not in what is said.
Despite Queensland’s recent messaging, money is still being committed, turbines are still being approved, and infrastructure is still being built. These two projects alone will deliver over 600MW of new wind capacity. That’s a meaningful contribution—both to emissions reduction and to the long-term resilience of the grid.
Investors should be cautious, yes, but not paralysed. Look for shovel-ready, grid-approved projects with major backers. Track what the state actually delivers, not just what the press releases say.
The Bottom Line
Queensland’s latest decisions are a reminder that renewable energy investment is not a straight line. Governments may stumble, stall, or even contradict themselves, but the broader trend remains intact. Infrastructure is being built. Projects are being approved. Capital is being deployed.
The moral of the story? Politics may set the tone, but it’s action, not announcements, that drives returns.
References
Australian Financial Review, Ryan Cropp “Queensland restarts stalled renewables rollout” May 20th 2025 https://www.afr.com/policy/energy-and-climate/queensland-restarts-stalled-renewables-rollout-20250520-p5m0ne
Update 26th May 2025
Just as this blog is completed, we see the Queensland Government’s shock decision to cancel the $1 billion Moonlight Range Wind Farm — after previously granting it conditional approval. The project, proposed by Greenleaf Renewables and Brookfield, was set to power over 260,000 homes and contribute significantly to the state’s renewable targets. But following strong local opposition and environmental concerns, the LNP government reversed its stance. It’s a clear reminder: politicians can talk big on renewables, but actions speak louder. The rejection has cast a shadow over more than 100 renewable projects in the state’s pipeline, fuelling further investor uncertainty. For those backing the transition to clean energy, this is a cautionary tale — governments may wave the green flag one day and slam on the brakes the next.
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