Mr. Trenorden questions the Minister for Energy about the Avon Energy proposal for a gas-driven power plant and gas pipeline. The Minister acknowledges the proposal but cites Western Power's concerns about price and transmission costs, offering further discussion and Office of Energy involvement.

AnsweredQoN 79Legislative Assembly
Asked
11 March 2004
Portfolio
Energy

QuestionView source ↗

Last year I presented Avon Energy’s proposal to the minister to put a 70 megawatt gas-driven power plant in the Avon industrial park, which would also facilitate a gas pipeline to the Avon community. (1) Has the minister examined the proposal? (2) Do the strong economic benefits of the proposal meet the Labor Government’s policy directions regarding energy? (3) Is the minister aware that the proposal, after six months, does not have Western Power’s approval, which is essential, as the key aspect of the project is Western Power purchasing power generation for distribution? (4) Is the project a positive one, in the minister’s view? (5) If so, and the project meets policy guidelines, will the minister direct Western Power to approve the proposal? Mr E.S. RIPPER

AnswerView source ↗

(1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
(1) Has the minister examined the proposal? (2) Do the strong economic benefits of the proposal meet the Labor Government’s policy directions regarding energy? (3) Is the minister aware that the proposal, after six months, does not have Western Power’s approval, which is essential, as the key aspect of the project is Western Power purchasing power generation for distribution? (4) Is the project a positive one, in the minister’s view? (5) If so, and the project meets policy guidelines, will the minister direct Western Power to approve the proposal? Mr E.S. RIPPER replied: (1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
(2) Do the strong economic benefits of the proposal meet the Labor Government’s policy directions regarding energy? (3) Is the minister aware that the proposal, after six months, does not have Western Power’s approval, which is essential, as the key aspect of the project is Western Power purchasing power generation for distribution? (4) Is the project a positive one, in the minister’s view? (5) If so, and the project meets policy guidelines, will the minister direct Western Power to approve the proposal? Mr E.S. RIPPER replied: (1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
(3) Is the minister aware that the proposal, after six months, does not have Western Power’s approval, which is essential, as the key aspect of the project is Western Power purchasing power generation for distribution? (4) Is the project a positive one, in the minister’s view? (5) If so, and the project meets policy guidelines, will the minister direct Western Power to approve the proposal? Mr E.S. RIPPER replied: (1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
(4) Is the project a positive one, in the minister’s view? (5) If so, and the project meets policy guidelines, will the minister direct Western Power to approve the proposal? Mr E.S. RIPPER replied: (1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
(5) If so, and the project meets policy guidelines, will the minister direct Western Power to approve the proposal? Mr E.S. RIPPER replied: (1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
Mr E.S. RIPPER replied: (1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
(1)-(5) I am aware of the Avon Energy project referred to by the Leader of the Opposition - sorry, the Leader of the National Party, perhaps the future Deputy Leader of the Opposition, if it can ever get a coalition together. I notice that the member for Carine is fighting hard to hold on to her shadow transport portfolio, so perhaps it will not happen. Anyone can see the regional development advantages of running a gas pipeline to Northam and having a power station in that area. The economics of such a proposition must always be examined in these circumstances. I understand that the project is based on Western Power buying the electricity from the proponents and transmitting the power from the power station to not only the industrial area but also the metropolitan area. I am advised by Western Power that the price proposed by the proponents is outside Western Power’s view of what is commercial. I am also advised that to retail the power in Perth would require the transmission system to be upgraded. Mr M.W. Trenorden: It does not generate enough power for Perth. Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
Mr E.S. RIPPER: The Leader of the National Party should let me finish. In other words, Western Power is saying that the price of the power is too high and that it would have to make a significant investment in the transmission system that it otherwise would not have to make. Those are the two arguments that Western Power has raised about the commerciality of this proposal. I will have the Office of Energy involved in discussions with the proponents to discuss whether there is a way forward for this project. Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
Mr M.W. Trenorden: Can you indicate that you will come back to us on that? Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.
Mr E.S. RIPPER: I am happy to have a further discussion with the Leader of the National Party about the matter or to answer further questions in this place.

Explore WA Government Data

Search the full archive in the free dashboard, or query programmatically via API.

Explore more