Queensland has launched a state-owned, 100 per cent renewable energy generator which the state government hoped would help cut annual power bills.

The company, dubbed CleanCo, is a change in tack for Queensland, whose two other state-owned generators – CS Energy and Stanwell Corporation – are coal and gas companies.

Queensland plans to build 1000 megawatts of renewable generation. Credit:Andrew Burke

Queensland Premier Annastacia Palaszczuk said the new energy company will cut household’s power bills by $70 a year.

“Preliminary analysis indicates that CleanCo should reduce wholesale electricity prices on average by around $7 a megawatt hour, which is expected to translate to an estimated $70 per annum saving for the average Queensland household,” Ms Palaszczuk said.