An innovative north Queensland renewable energy project, which will combine solar and hydro power technology, is a step closer to reality with preliminary construction beginning this week.

The first stage of Genex's power station, a 50-megawatt solar farm built on the site of the disused Kidston gold mine, has been green-lit and was expected to be operational by the end of next year.

The first stage of the Kidston power station will be a 50 megawatt solar farm. Credit:Artists' impression

The Queensland government signed its first formal Solar 150 program deed of agreement with Genex in Townsville on Thursday.

That agreement set a 20-year price guarantee on the power generated at Kidston, which was able to shore up investors and guarantee construction.