Environmentalists and a Queensland resources lobby group have both given cautious approval after news the state government's clean energy company will get off the ground.
The Labor government announced on Thursday it has scraped together $250 million from several other clean energy programs to pay for the initial funding of CleanCo.
The government estimates the company will drive down power prices by around $70 a year by increasing competition and investing in renewable energy sources.
The Queensland Resources Council said varying investment into different energy sources was a sensible approach.
"We hope to see even more investment in the full range of energy resources, because the bottom line is that Queensland industry and Queensland homes need reliable power around the clock, at a price they can afford," QRC chief executive Ian Macfarlane said.
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The Australian Conservation Foundation welcomed the government's announcement but urged them to reconsider the decision to include an existing gas power station in CleanCo's portfolio.
The Electrical Trades Union, which previously criticised CleanCo as "privatisation by stealth", commended the government's move as a "good first step".
ETU state secretary Peter Ong said there was still work to be done to secure jobs for regional workers in the renewables sector.
The Liberal National Party claimed the initiative is a stunt to appease the Left faction within the Labor Party.
Labor should instead adopt the opposition's policy to mandate renewable investment by state-owned power stations, shadow Treasurer Tim Mander proposed.
