New power contract signed

16/9/03
Exmouth is to get a new gas fired power station after Energy Minister Eric Ripper approved an 18-year power purchase contract for the supply of clean, reliable electricity to the town.
Mr Ripper said the contract would result in the construction of the new power station in Welch Street with an initial six megawatt reliable generating capacity, expanding to 8.5 megawatts in later years.
He said the power station would see electricity supplied more efficiently to Exmouth's 1,065 residential and commercial customers, with lower greenhouse gas emissions and at lower cost to Western Power.
The power supply contract, between Western Power and Exmouth Power Station Pty Ltd, a subsidiary of Burns and Roe Worley Limited, was signed last week in Perth.
Compressed natural gas to fuel the new station would be transported 220 kilometres by road from the Dampier to Bunbury Natural Gas Pipeline. Trucks would deliver CNG twice a day for most of the year to the Welch Street industrial area, bypassing the town centre. Deliveries would increase to three times a day during summer towards the end of the contract period.
Western Power would continue to own, operate and maintain its existing wind farm at Exmouth.
"This new power station is important economic infrastructure which will put Exmouth in a strong position for long term development," he said.
Mr Ripper said Western Power was responsible for 26 small stand alone power systems serving 22,500 customers in regional and remote areas not connected to the main electricity grids.
It cost Western Power more than $50million a year to subsidise power supplies in regional areas off the grid.
"Many regional towns in Western Australia rely on costly and inefficient diesel powered electricity generation which also contributes to greenhouse gas emissions. The aim of putting regional power generation to competitive tender is to seek power suppliers who may be able to offer a more cost-effective and efficient alternative," he said.
"While there will be no change to the tariff for customers, Western Power expects to reduce its costs by as much as 28 per cent as a result of this new power station in Exmouth."
Mr Ripper said the former Exmouth Shire Deputy President Peter Green played a crucial role representing the community on the power procurement evaluation team.
Minister's office: 9222 8788