State-owned Powerlink will build a new 132,000 volt transmission line from Lilyvale to Blackwater by the summer of 2007-08.

“Powerlink's routine planning studies show electricity demand in the area is forecast to increase at an average of 4 percent per year over the next few years,” Energy Minister John Mickel said.

“This consistent growth is being driven by the strong mining industry in the southern Bowen Basin, surrounding the towns of Biloela, Moura, Blackwater and Emerald. A reliable high voltage electricity supply is key infrastructure that will help support the developing industry in those areas well into the future."

Powerlink Queensland chief executive Gordon Jardine said the precise location of the alignment of the new transmission line was yet to be decided.

The initial consultation with potentially affected property owners and the public release of draft terms of reference will occur this month, and a draft environmental impact statement will be released for public comment in May.

Construction will commence early 2007 and the line will be commissioned late 2007.