Qld solar farm dependent on energy target

THE $1 billion Queensland project received local planning approval on Monday, with construction to happen in stages over eight years from 2016.

When complete, millions of photovoltaic panels will cover 5260ha of former gazing land between Millmerran and Goondiwindi, west of Toowoomba.

Developer Solar Choice says when complete, the solar farm will generate two gigawatts of electricity, enough to power 550,000 homes in Queensland and NSW.

Managing director Angus Gemmell says the project, which is also one of the world's largest proposed solar farms, is attracting a lot of investor interest.

But he says uncertainty over Australia's RET is a detractor.

The RET aims for 20 per cent of electricity to come from renewable sources by 2020, but the Abbott government has said it wants to cut that target by more than one-third.

"That has placed a lot of doubt for the industry because it's hard for investment to flow or for the retailers to sign power purchase agreements when they don't know where the goalposts are," Mr Gemmell told AAP.

"For investment to flow, certainty is required."

He said Solar Choice has received "advanced" interest from large-scale solar investors from the US and Europe.

"They are satisfied that there are no red flags on the project, but they are awaiting for certainty on the RET," he said.

"It would be a setback if there's no certainty soon or if the target is diminished."