Queensland is on the verge of entering one of its biggest renewable energy deals to date, in a potential joint-venture worth nearly $1 billion to the economy.

The state owned Ergon Energy has offered a 'power purchase agreement' to the Mount Emerald Wind Farm, a joint venture between Ratch Australia and Port Bajool, which would progress a 170 megawatt wind farm in the State's far north.

The government has committed to establishing a 50 per cent renewable energy target by 2030. A report into the renewable sector in Queensland found that big scale wind projects, which benefit the most from the federal government's Large-Scale Renewable Energy Target were currently lacking in Queensland, with Victoria and South Australia so far attracting the bulk of the investment.

It's why the announcement of a potential agreement from the government on Thursday has caused ripples of excitement throughout the Palaszczuk Cabinet.