❓ Question regarding the Muja AB project's justification after delays following the Varanus Island gas outage. The answer confirms reassessment and continued support based on energy demand forecasts and transitional capacity needs.
AnsweredQoN 3237Legislative Assembly
QuestionView source ↗
I refer to Muja AB project and ask: (a) if the Muja AB project was indeed an “urgent response” to the Varanus Island gas outage of 2008 why was it not reconsidered in September 2009 following the 12-month delay due to environmental approval; and (b) did the Government and Verve reassess the viability of the project following the 2009 delays?
AnswerView source ↗
Answered
17 February 2015
Responded by
Minister for Energy
Response time
82 days
(a) Following the Varanus island incident, the viability of the project was considered and supported by:
Forecasts of strong growth in energy and peak demand on the South West Interconnected System (SWIS) by the Independent Market Operator, indicating a requirement for new capacity on the SWIS.
The refurbishment project was seen as a means to provide additional transitional generating capacity onto the SWIS for a period of up to 15 years in the context of much uncertainty related to electricity demand, environmental and technology related risks when compared to investing in new capacity with an expected asset life of at least 30 years.
(b) Yes
Forecasts of strong growth in energy and peak demand on the South West Interconnected System (SWIS) by the Independent Market Operator, indicating a requirement for new capacity on the SWIS.
The refurbishment project was seen as a means to provide additional transitional generating capacity onto the SWIS for a period of up to 15 years in the context of much uncertainty related to electricity demand, environmental and technology related risks when compared to investing in new capacity with an expected asset life of at least 30 years.
(b) Yes
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