|ONE of the biggest solar/gas power projects in the world has been canned while Australia’s most generous solar rebate cut by75%.Australia’s Queensland government is pulling $75m out of a renewable energy power project and cutting solar rebates from 44c to 8c kWh..Regional Queensland was set to be home to one of the biggest combination solar and gas power plants in the world under a $1.2bln scheme m— a joint Federal-State Government and private partnership.The Solar Dawn project would have used Australian-pioneered technology and transformed Chinchilla and the western Darling Downs into the nation's mixed-energy capital.But the Liberal National Party has found a way to back out of an earlier Labor government agreement and stop its contribution.The final cut is really not news considering the Premier Campbell Newman signalled soon after winning the March state election that he would look at pulling the plug on the $75m investment if he could do it without risk to taxpayers.Minister for Energy and Water Supply Mark McArdle wrote to federal Energy Minister Martin Ferguson last week to confirm he had cut the Queensland contribution.Mr McArdle was understood to have told Mr Ferguson Solar Dawn was unable to meet the State Government's funding agreement.As a result, the agreement between the two governments was "terminated".Mr McArdle apparently expressed "disappointment" at the outcome and hoped the project would still work with federal backing.Prime Minister Julia Gillard had committed $464m, saying the project would support Labor's carbon tax and keep the environment clean.The Liberal National Party was able to stop the contribution because Solar Dawn and the state-owned electricity utility Ergon were unable to negotiate a power purchase agreement.Construction on the Solar Dawn project ~ about 300km west of Brisbane ~ was due to start in 2013 and be completed within three years.The Federal Minister for Energy, Martin Ferguson described it as a disappointing development."The Solar Dawn project offers Queensland the opportunity to be at the forefront of solar thermal technology and home to one of the largest solar power stations in the world," he said."These opportunities have to be grabbed, but the Queensland Government seems content to let them slip by."He said the future of the project would be determined by the independent Australian Renewable Energy Agency.The state government under Premier Campbell Newman announced the Queensland Solar Bonus Feed-in Tariff scheme is to be slashed from 44c kWh to 8c kWh from July 10.This was the most generous rebate for solar panels installations in Australia.The 8c tariff will be reviewed by July 1, 2013. It is scheduled to end on July 2014.The Government is reducing the tariff to limit future cost impacts of the scheme on the power bills of all Queensland electricity consumers.