THE Mid West region’s most advanced power generation proponent has slammed Western Power’s plans for a long-awaited $318 million upgrade of transmission lines between Perth and Eneabba as sub-optimal and discriminatory.
THE Mid West region’s most advanced power generation proponent has slammed Western Power’s plans for a long-awaited $318 million upgrade of transmission lines between Perth and Eneabba as sub-optimal and discriminatory.
The scathing comments by Eneabba Gas, which has all permitting approvals to build a 168-megawatt gas-fired power station near Dongara, are contained in a detailed submission on the proposed transmission upgrade lodged with the utility this week.
The planned 330-kilovolt transmission line to Eneabba is expected to get under way early next year and start operating in 2012.
The upgrade is generally considered vital by emerging magnetite iron miners in the Mid West, who will require significant new power supplies, and by the region’s rapidly growing renewable energy sector. Renewable proponents need the upgrade to access metropolitan and industrial customers in the south, which would better enable them to secure project finance.
In its submission lodged on Wednesday, Eneabba accused the utility of failing to engage in proper consultation, pursuing a sub-optimal business plan and unfairly favouring wind generation over conventional base load power suppliers.
Eneabba said Western Power’s statements that various alternatives had been assessed before it settled on its preferred option appeared to pre-empt the consultation process now under way. It also questioned Western Power’s frequent statements supporting new wind power projects in the region and “near total absence” of support for thermal generation in its options paper on the Mid West upgrade.
More significantly, Eneabba attacked as “commercially illogical” Western Power’s decision not consider the simultaneous extension of the new transmission line all the way to Geraldton, which would cost less overall than a staged upgrade.
The $280 million stage two extension has not yet been funded by the state government but is considered vital to the expansion of industry in the region’s north-east once the Oakajee port is complete in 2014.
Eneabba’s criticism of Western Power’s upgrade plans come after a frustrating period for the independent power proponent, which has long sought to become a direct supplier to new industrial power customers in the Mid West and has previously argued against the proposed transmission upgrade.
Eneabba achieved the last necessary permitting approval to proceed with the Centauri-1 power station in 2007, but has not yet signed any binding offtake agreements with prospective customers that would enable it to finance development.
The company has also opted to produce its own fuel at its nearby Sargon coal deposits using newly developed underground coal seam gasification technology, which remains unproven at commercial scale.
