Natural resources minister Stephen Robertson said the project marked a significant milestone for Queensland water supplier SunWater, as Tinaroo Falls was its first hydro power station to go online.

"Tinaroo Falls is just the first of these hydro schemes as SunWater is currently doing a feasibility study with Stanwell Corporation for a 30 megawatt hydro power station at Burdekin Falls Dam near Charters Towers.

"I expect a range of other mini-hydro opportunities will be investigated by SunWater over the next couple of years.

Robertson said the Tinaroo Falls hydro power station will generate 1.6 megawatts of green electricity for the State's power grid which could supply more than 1200 homes.

"This in turn will help reduce greenhouse gas emissions by about 8500 tonnes a year - which equates to taking 2000 cars off the road," he said.