One of the southern hemisphere's largest wind energy zones will be operating sooner after the federal government agreed to foot the bill to connect it to the national grid.
The Commonwealth will cover the $160 million cost of connecting Queensland's Southern Downs Renewable Energy Zone, which includes two major wind farms, to the grid.
Queensland government-owned Powerlink will build and operate 65 kilometres of new overhead transmission lines and two new switching stations.
Climate Change Minister Chris Bowen says the deal will deliver more renewable energy to households and businesses in southern Queensland and the east coast.
"We are delivering on our Powering Australia plan which includes a major boost to renewable energy supplies to help create jobs and reduce emissions across the nation," he said.
"The best way to put downward pressure on energy prices is to ramp up investment in renewables, transmission and storage."
The investment is the first account between the federal Clean Energy Finance Corporation and a Queensland government-owned company.
The Southern Downs zone contains the 102.6MW Karara Wind Farm being built by the state-owned CleanCo and the 1026MW Macintyre Wind Farm being built by Acciona
Queensland Energy Minister Mick de Brenni said the new poles and wire will help establish one of the largest wind energy zones in the southern hemisphere by 2024.
He said it would also help guarantee electricity supply across Australia's three eastern states.
"This project will enable the largest renewable energy zone in the nation," Mr de Brenni told reporters on Thursday.
Mr de Brenni said the renewables projects will put downward pressure on electricity prices.
"We've seen the cost of wholesale electricity across the nation rise to unacceptable levels," he said.
"The best way to reduce electricity costs for businesses and households is to build more renewable energy.
"It also presents another opportunity to build onshore capability and skill Queenslanders for renewable energy jobs of the future."
