Queensland LNP names new energy minister, nixes massive pumped hydro project

New Queensland premier David Crisafulli has announced his new Cabinet, with senior Liberal National Party MP David Janetzki handed the state’s all-important energy portfolio, alongside the role of treasurer.

Janetzki, a former lawyer and banker who was raised on a Darling Downs dairy farm, was elected to the Queensland Legislative Assembly representing the seat of Toowoomba South at a by-election in July 2016.

His appointment as treasurer for the newly formed LNP government was expected, but his role as energy minister was not, given Crisafulli’s repeated promises to transfer his shadow ministry to the front bench, unchanged, if elected.

Deb Frecklington, who was shadow minister for energy in opposition, has instead been sworn in as attorney-general and minister for justice and minister for integrity.

Nevertheless, given the Queensland government owns tens of billions of generator, network and distribution electricity assets, putting the person in charge of the state’s purse strings in control of these assets could make some sense. Matt Kean combined both roles in the NSW coalition government when promoted to treasurer.

There is uncertainty about the LNP’s exact intentions on energy, given it wants to keep burning coal as long as it can, remove the renewable energy targets from legislation, but still keep the state’s emission reduction targets.

In an interview with the Financial Review last week, Janetzki said the LNP would focus on reining in Queensland debt by dumping Labor’s “economically reckless” election promises.

First on the list is the Pioneer-Burdekin pumped hydro project, where costs have reportedly blown out to $20 billion or more, and was deemed critical by Labor for storing energy and stabilising the grid.

Last week, when announcing the party’s costings, Janetzki said that scrapping the huge pumped hydro project could save the state $925 million. Local media says that work on the project has already been halted.

Janetzki did not announce any funding for the LNP’s renewables plans, which so far include smaller pumped hydro projects and rooftop solar for renters.

As the Australian Energy Council explains here, the LNP has also signaled its intent to scale back Labor’s renewable energy ambitions, particularly its target of 70 per cent renewable energy by 2032. Projects locked in by Labor are likely going to take it past the 50 per cent target by 2030.

In line with its federal counterpart, Crisafulli’s LNP claims to support net-zero by 2050, but has little in the way of plans to get there.

Crisafulli has said his government will prioritise a “balanced approach” in which renewables will play a role, alongside coal and gas. He has also pledged to keep the Sunshine State’s coal plants open past their use-by date if necessary.

“Treasurer David Janetzki will … take on responsibility for energy, as a key opportunity to ease energy costs, but also to deliver on the LNP’s commitment for smaller, achievable pumped-hydro projects to secure our energy future,” Crisafulli said on Friday at the swearing in.

On nuclear, Janetzki is among a handful of Queensland MPs that have hinted at aligning with the federal Coalition’s plans, such that they are. Within two hours of the polls closing on Saturday, he said the choice of nuclear was a “matter for the federal government.”

Elsewhere, there is little to indicate what Janetzki thinks about energy, although last month he described Stephen Miles’ plan for a state-owned retailer as “yet another desperate distraction from power bills soaring.”

“The solution is state-owned generators running at capacity, not more state-owned retailers running off with your money,” he said on Instagram.

“It’s time for a fresh approach and the right plan for Queensland’s future.”

Perhaps the most positive sign that the new energy minister will not take the state backwards on renewables and decarbonisation can be found in a speech he made to parliament in 2021, on climate change.

“It will be technology driven change that starts to address these greater problems. It must be driven by technological change rather than by tax. It must be a policy driven over the long term into these new renewable industries. That is why it is good to see this investment into the hydrogen industry. That is a way for the future.

“Across our region there is a growing acceptance and willingness to engage in renewables projects. There is no denying that.

“We have wind farms right across the Darling Downs into the Western Downs, the South Burnett and out to Chinchilla in the member for Warrego’s electorate. We have solar farms, such as the Canadian solar operation at Oakey that I visited on Friday, right across our region.

“It is supported by our local industry groups, by TSBE, by chambers of commerce and by the community at large. There is an acceptance that it will be technology driven approaches that will address these deep concerns. It will not be politics that solves these problems, but good policy on the ground by good communities.”