The federal government says it will spend up to $6 million on two new Queensland electricity generation projects – including a coal-fired power plant – as part of a bid to lower power prices.

About $2 million has been set aside for a pre-feasibility study on a 1.5 gigawatt hydroelectric plant to be developed as part of the planned Urannah Water Scheme, while up to $4 million will support a feasibility study for a 1GW "high efficiency, low emissions" coal plant at Collinsville.

Energy Minister Angus Taylor says the two projects will help meet the power needs of those in central and north Queensland. Credit:Louie Douvis

"We are supporting two promising new generation projects to deliver the reliable, affordable power that the north Queensland economy needs to grow and thrive," Deputy Prime Minister Michael McCormack said.

Energy Minister Angus Taylor said the projects were important to meet the power needs of people in central and north Queensland.