Ahead of its budget announcement, the north-eastern state said it would invest A$1.16 billion (US$863 million) in improving its energy system.
The Powering Queensland Plan is a roadmap to encourage pressure on electricity prices, boost jobs and investment and grow renewables in the energy mix.
"We know that rising wholesale prices and energy security have emerged as key issues in Australia over the last six months, driven by a lack of federal policy leadership undermining industry investment, gas supply restrictions in southern states, retirement of ageing coal-fired power stations and unprecedented demand during recent summer heatwaves," said Queensland premier Annastacia Palaszczuk.
As part of the plan, Queensland has launched a reverse auction to source 400MW of renewable energy, including 100MW of storage.
Australia's Clean Energy Council has backed the plans. "Queensland is in the midst of a renewable energy investment boom, with almost 20 projects either under construction or due to start this year," said CEC chief executive Kane Thornton.
"This current investment boom is worth A$2.2 billion, 1GW of new generation capacity and almost 1,700 direct jobs, with many more benefits flowing into regional areas. Today's policy initiatives will ensure this is just the beginning," Thornton added.
Elsewhere in Queensland, developer AGL has said it received approval to build the 460MW Coopers Gap project in the centre of the state.
The 115-turbine site will become Queensland's largest wind project.
