❓ Opposition questions the Energy Minister's plan to exit state generation, given recent investments in generation capacity. The Minister defends the plan, stating future capacity will be private sector led.
AnsweredQoN 45Legislative Assembly
QuestionView source ↗
SYNERGY
AND VERVE — RE-MERGER
45. Mr M. McGOWAN to the Minister for Energy:
I refer to the minister's
comments in The West Australian on 11
April 2013 in which he was reported as saying —
''Do I think the State will
slowly exit generation? Yes,''
(1) How does
allowing Verve Energy to increase its generation capacity beyond 3 000
megawatts assist in the minister's plan for the state exiting
generation?
(2) How does
spending $250 million on refurbishing the 40-year-old Muja plant assist in the
minister's plan for the state to exit generation?
(3) How is
spending $300 million on the Kwinana HEGT—high efficiency gas turbine—plans
consistent with the minister's plan for the state to exit generation?
(4) Is the
minister's plan not just shorthand for privatising the new merged
Synergy?
AND VERVE — RE-MERGER
45. Mr M. McGOWAN to the Minister for Energy:
I refer to the minister's
comments in The West Australian on 11
April 2013 in which he was reported as saying —
''Do I think the State will
slowly exit generation? Yes,''
(1) How does
allowing Verve Energy to increase its generation capacity beyond 3 000
megawatts assist in the minister's plan for the state exiting
generation?
(2) How does
spending $250 million on refurbishing the 40-year-old Muja plant assist in the
minister's plan for the state to exit generation?
(3) How is
spending $300 million on the Kwinana HEGT—high efficiency gas turbine—plans
consistent with the minister's plan for the state to exit generation?
(4) Is the
minister's plan not just shorthand for privatising the new merged
Synergy?
AnswerView source ↗
(1)–(4)
I will start with the last one first: no. I made the statement and I stand by
it; that is, over the next three or four years we do not need any more
generating capacity in this state at all. We have 700 megawatts of excess
supply now—again, a sign of a flawed system. We do not need any more,
and I might add that that is on the assumption that electricity consumption or
demand continues to grow. The data that I have received, in the case of both
the eastern seaboard and here, is that electricity consumption and demand, let
us say, are declining. So, we will not need any electricity at all for three to
four years. We will not need any additional base load till about 2021. After
that there will be a need for, they say, about $10 billion to replace the
existing capacity we have. As I indicated, and as the Premier indicated
yesterday, we expect that after 2021, that additional capacity will be
undertaken by the private sector in the main. That is what I said, that is what
we stand by, and that is probably what is going to happen no matter who is in
power.
Now, as to what has happened in the past and
decisions to refurbish Muja A and B, that took place and that will be an issue
we will debate in this house in the near future no doubt. That decision was
taken in 2010. That exists. They are in the process of refurbishing. They have
been operated, and started operating, actually, before I became the minister.
So, that is it. I wonder whether the member for Collie–Preston is so
far against that; okay.
As to the other expansions that had taken
place in the past, they are what they are. They are what I have to deal with.
They are in a situation that exists now. What I said deals in the future, and I
think in the future, and I am confident that the major expansion, when needed,
of generating capacity will be funded by the private sector and, I trust, in a
marketplace in which the private sector takes the risk, unlike now.
I will start with the last one first: no. I made the statement and I stand by
it; that is, over the next three or four years we do not need any more
generating capacity in this state at all. We have 700 megawatts of excess
supply now—again, a sign of a flawed system. We do not need any more,
and I might add that that is on the assumption that electricity consumption or
demand continues to grow. The data that I have received, in the case of both
the eastern seaboard and here, is that electricity consumption and demand, let
us say, are declining. So, we will not need any electricity at all for three to
four years. We will not need any additional base load till about 2021. After
that there will be a need for, they say, about $10 billion to replace the
existing capacity we have. As I indicated, and as the Premier indicated
yesterday, we expect that after 2021, that additional capacity will be
undertaken by the private sector in the main. That is what I said, that is what
we stand by, and that is probably what is going to happen no matter who is in
power.
Now, as to what has happened in the past and
decisions to refurbish Muja A and B, that took place and that will be an issue
we will debate in this house in the near future no doubt. That decision was
taken in 2010. That exists. They are in the process of refurbishing. They have
been operated, and started operating, actually, before I became the minister.
So, that is it. I wonder whether the member for Collie–Preston is so
far against that; okay.
As to the other expansions that had taken
place in the past, they are what they are. They are what I have to deal with.
They are in a situation that exists now. What I said deals in the future, and I
think in the future, and I am confident that the major expansion, when needed,
of generating capacity will be funded by the private sector and, I trust, in a
marketplace in which the private sector takes the risk, unlike now.
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