The federal government and Queensland are butting heads over the state's power needs, pitting coal against clean and renewable energy sources.

Over the weekend, Queensland announced plans to build a hydro-electric power station in the Burdekin Falls Dam, south of Townsville.  But Federal Resources Minister Matt Canavan describes that as "tiny" and can't fathom why QLD is planning to use coal.

"The Queensland government is happy to export coal and make billions of dollars for their budget from royalties for coal," said Mr. Canavan to the ABC.  "It's okay to burn that coal in other countries but not here apparently in Queensland.  That is absurd.  Why would we send a valuable economic resource to another country to use but not even consider using it ourselves?"

Canavan said there was no base-load power generated north of Rockhampton and believes that a coal power plant would do well at the Galilee basin or at the now idle Collinsville power station.

But Queensland's Energy Minister Mark Bailey is against any new coal power, which he thinks is too dirty, too expensive, and bad for the Great Barrier Reef.  Mr. Bailey believes the federal government is "out of touch and don't care enough about climate change nor the economics of large scale renewables being cheaper now to build than new power stations". 

In addition to the new hydro, QLD is planning new solar farms at Townsville, the Darling Downs, Oakey, and Longreach - all of which can provide baseline power and with rapid improvements to battery storage, will be less expensive than coal.

"What they need to be doing is getting behind the clean energy movement in Queensland - that's the future," said Bailey, "The last thing we need though is a new coal power station which will lock in high carbon emissions for a generation and a half cooking the reef."