The Minister for Energy provides an update on the Esperance power project, highlighting its environmental and economic benefits, while also criticising the Esperance Gas Distribution Company for potentially ceasing gas supply to residents. A point of order is raised regarding the Leader of the Opposition allegedly taking photos.

AnsweredQoN 757Legislative Assembly
Asked
24 September 2020
Portfolio
Energy

QuestionView source ↗

ESPERANCE POWER PROJECT
757. Mr
Y. MUBARAKAI to the Minister for Energy:
I refer to the McGowan Labor
government's efforts to drive the Western Australian economic recovery
through its investment in renewable energy infrastructure that creates jobs and
reduces carbon emissions. Can the minister update the house on this government's
investment in the Esperance power project and what it will mean for both the
environment and the local economy?

AnswerView source ↗

I thank the member for the question.
This is a very exciting project for the Esperance region. This is the largest renewable energy investment in the Esperance
region's history. The new power station will include a state-of-the-art gas-fired power station, a centralised
battery, and a renewables hub consisting of a solar farm and two wind turbines .
This project will see a 50 per cent reduction in carbon emissions from the
Esperance power system. I am sure that farmers who are being impacted by
climate change will all greatly welcome that the government is working so hard
to reduce carbon emissions. They are all being impacted by climate change. It
is time that everybody stood up and started to take action to reduce our carbon
emissions. This project will do exactly that.
That is not the end of it. This $80 million
project is commencing construction now. Horizon Power has had its project team
in Esperance recently to encourage local community engagement with the new
project. It is believed that it will create 50 jobs during the 15-month construction
phase. It will also reduce the need for subsidies to Horizon Power by $10 million
a year. It is very important that such an incredibly large reduction in the
subsidies to Horizon Power will arise from this project. It has also recently
been announced that the Southern Ports Authority has signed a 20-year power
supply agreement with Horizon Power that will be 20 per cent of the annual
energy generated in that area. We are very excited to see the Southern Ports
Authority take advantage of this new power station. This agreement will allow
Contract Power to take over the supply of energy in Esperance.
I want to raise a separate and
unrelated issue that has been talked about in the community down there. The
current supplier of gas to 400 houses in Esperance is called the Esperance Gas
Distribution Company. This company is owned by investors in New South Wales. It
also owns the existing power station. The Esperance gas company is telling
people that because it was not the winning bidder for the power station
contract, it will stop providing gas to the
Esperance community. I find that disgraceful behaviour by a corporation that
has been taking millions of dollars out of that community for over 20 years.
Think about this: the new contract is $10 million a year cheaper than the
existing contract. That additional money is currently flowing to the investors
based in Sydney. Let us understand that.
That company would not put in a competitive tender, even though it had the
assets in place that were fully written down after the end of the
existing power purchase agreement. It could have provided a cost-effective
contract for the government but it chose not to. It wants that extra $10 million
a year from the taxpayers of Western Australia to go to its investors in Sydney.
It is trying to leverage that by threatening 400 consumers in Esperance. It is
a disgrace. I have said that on radio and I will say it again now.
Let
me make it clear that Horizon Power and the state government are happy to work
with the Esperance gas company to ensure that those 400 consumers have a
gas supply. There is no technical reason that those 400 consumers cannot continue to be supplied with gas from the
existing pipelines. We are very keen to work with the current company to
make sure those 400 people in Esperance do not miss out. Let me make it clear
that no action of government will prevent Esperance gas company continuing to
supply gas to Esperance consumers.
Point of Order
Mr D.A. TEMPLEMAN : I have just been alerted that the Leader of the
Opposition may have been taking photographs or a video using her mobile phone. If she has, I ask that they be
deleted, or, if that was not the case, Mr Speaker, could you explain the
rules with regard to photographing any member in this place?
The SPEAKER : Leader of the
Opposition, have you taken photos?
Mrs L.M. HARVEY : I am sorry,
Mr Speaker, but that is an absurd accusation. I have not been taking
photographs of anyone.
The SPEAKER : I just want to
know, yes or no.
Mrs L.M. HARVEY : Absolutely
not.
A member interjected.
The SPEAKER : I am not talking
to you. The member has said that she has not been taking photos, but everyone
in this chamber should know that they cannot take photos in the chamber at any
time. The cameras will pick it up if she did. That is the main thing.

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