The cost of achieving the Queensland government's goal of 50 percent renewable power by 2030 will impact taxpayers and electric customers.  However, a new report says the worthwhile investment will be offset by the lower electric prices renewables will produce.

An expert panel commissioned by the Palaszczuk government and chaired former Macquarie banker Colin Mugglestone came up with a preliminary report saying Queensland will need more than AU$6 billion in new investment in wind and solar projects to boost capacity by 14,000 megawatts.  It would bring the state's power generation from seven to 50 percent renewable.  The report maintains that wholesale electricity prices would come down as renewable projects became more competitive.

"The panel believes contract for difference is the best market mechanism to achieve this. We don't believe a broader state-based mechanism such as carbon pricing should be considered," said Mr. Mugglestone, as quoted by the Australian Financial Review.  "Under the modelling, the net effect on consumers are expected to be broadly cost neutral. This occurs because of increased renewable generation placing downward pressure on wholesale prices which is projected to off-set the payment of renewable subsidies."

The plan lays out three possible pathways to achieving 50 percent - steady, uniform yearly investment; waiting a few years for technology costs to come down and then ramping up quickly; and a third way that seems out of the state's control, which is hoping a federal government will put in place a scheme to reduce emissions in the electricity sector.  QLD Energy Minister Mark Bailey says all three seem workable.

"What we see today in these three credible pathways that have been brought down by the independent expert panel is that all three pathways are cost neutral to electricity consumers," Mr. Bailey told the ABC.  "I think that will surprise a lot of people. I think it is a fantastic outcome, based on very thorough modelling."

He added, "This is due to additional supply from new renewable generators placing downward pressure on whole electricity prices which is projected to offset the payments to renewable projects."

Mr. Bailey said the report predicts that 6,000 jobs will be created by expanding renewables.  The expert panel will issue its final report by the end of year.