The Queensland Government says it will put downward pressure on electricity prices through a new renewable energy body.

The Government is creating a new publicly owned ‘CleanCo’ clean energy generator, which it says will secure a cleaner, more affordable, sustainable and secure energy supply.

It is intended to support the growth of Queensland’s renewable energy industry and increase competition in the wholesale electricity market, lowering electricity prices and facilitating a reliable and affordable transition to increased renewable energy.

The state says CleanCo will increase competition in the National Electricity Market (NEM) and put downward pressure on wholesale electricity prices — delivering benefits to individual households and large commercial and industrial customers.

The Government’s preliminary analysis indicates CleanCo should reduce wholesale electricity prices by on average around $7/MWh, which is expected to initially translate to an estimated $70 per annum saving for the average household.

CleanCo will also have a commercial mandate to increase competition to the energy market at peak demand times when wholesale electricity prices are the highest.

Any employees transferring to CleanCo from existing groups like CS Energy or Stanwell will maintain their existing conditions, including no-forced redundancies or relocations.

Any new CleanCo employees will also be on the same terms and conditions as any transferring employees.

The government has issued a fact sheet (available in PDF form) with more information.