The Queensland Government has been given the green light to build an $18 million power plant on Palm Island, off Townsville.

Queensland State Treasurer Curtis Pitt says the project will boost the island’s economy.

“The new diesel station will be designed and built as `renewable energy ready’ to accommodate possible future innovations or investments, such as potentially constructing a solar farm nearby,” Mr Pitt said.

Minister for Energy and Water Supply, Mark Bailey, said the current power station was more than 30 years old and wouldn’t meet the community’s electricity needs into the future.

“Palm Island is a growing community and this new power station with a future option to add solar will secure a reliable power supply and underpin the local economy,” Mr Bailey said.

Townsville MP, Scott Stewart, said “Construction of the power station is expected to commence towards the end of this year and take 18 months to complete.”

A tender for the new generators will be released in coming weeks.

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