❓ Question regarding a $15.75 million grant to Carnegie Clean Energy for a wave energy project, focusing on the business case, grid connection, and potential conflict between ministerial colleagues regarding value for money. The answer outlines the project's approval process, total cost, expected grid connection timeline, initial discussions with Western Power, and options for power purchase agreements.
AnsweredQoN 1069Legislative Council
QuestionView source ↗
I refer to the Minister's media statement on 6 October 2017 'Albany to become wave energy innovation centre', and I ask: (a) please table the business case supporting the $15.75 million grant to Carnegie Clean Energy as a contribution toward a wave energy technology project; (b) what is the total cost of the wave energy technology project of which the State has made a contribution of $15.75 million; (c) the Minister's statement refers to the wave energy project will 'export into the South West Interconnected System', will the project achieve this, when and at whose cost; (d) did the business case risk assessment consider the grid connection of the project outlined in the Minister's statement and what was the outcome of the assessment; and (e) given the Minister for Energy's public commentary in the Albany Advertiser on 1 March 2018 'However, I will not direct the Synergy board to enter into any arrangements that do not provide value for money to the taxpayer', how do you intend to resolve the impasse between the Minister and your ministerial colleague and deliver the commitment the Minister made in the media statement to avoid a stranded power generation asset funded by the taxpayer?
AnswerView source ↗
Answered
9 May 2018
Responded by
Minister for Regional Development
Response time
10 days
(a) The State investment into the Wave Energy Technology project was an election commitment approved by Cabinet. The decision to award the grant to Carnegie followed a rigorous tender process.
(b) The total cost of the technology development project is $53 million.
(c) The Financial Assistance Agreement (FAA) between the State and Carnegie sets out milestones that trigger funding payments. The export of electricity into the South West Interconnected System is one of these milestones, which Carnegie’s project schedule shows as expected to be achieved by 1 July 2020.
(d) As part of the initial project planning phase, the Department of Primary Industries and Regional Development (DPIRD) discussed the project with Western Power, which confirmed that a connection to the network would be possible.
(e) A generator can put in place Power Purchase Agreements with any retailer in Western Australia and is not restricted to Synergy, or a generator can choose to sell its power into the Western Australian market on a merchant basis. Carnegie therefore has a range of options for offtake arrangements that it will put in place in due course.
(b) The total cost of the technology development project is $53 million.
(c) The Financial Assistance Agreement (FAA) between the State and Carnegie sets out milestones that trigger funding payments. The export of electricity into the South West Interconnected System is one of these milestones, which Carnegie’s project schedule shows as expected to be achieved by 1 July 2020.
(d) As part of the initial project planning phase, the Department of Primary Industries and Regional Development (DPIRD) discussed the project with Western Power, which confirmed that a connection to the network would be possible.
(e) A generator can put in place Power Purchase Agreements with any retailer in Western Australia and is not restricted to Synergy, or a generator can choose to sell its power into the Western Australian market on a merchant basis. Carnegie therefore has a range of options for offtake arrangements that it will put in place in due course.
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