❓ Hon. Kate Doust questions the Minister for Energy regarding the procurement of new gas turbines and the extension of power station operational life, specifically concerning consultation with the Independent Market Operator (IMO) and the Economic Regulation Authority (ERA). The Minister admits no consultation occurred, citing urgency due to potential capacity shortages.
AnsweredQoN 453Legislative Council
QuestionView source ↗
ELECTRICITY SUPPLY STRATEGY
I refer to the government’s recent announcement concerning the construction of new gas turbines and the extension of the operational life of the Muja A and B power stations and the Kwinana power station. (1) Will the minister explain how this procurement meshes with the statutory role of the Independent Market Operator in increasing capacity in the south west interconnected system? (2) Why was this announcement made in advance of the 2009 statement of opportunities? (3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER
I refer to the government’s recent announcement concerning the construction of new gas turbines and the extension of the operational life of the Muja A and B power stations and the Kwinana power station. (1) Will the minister explain how this procurement meshes with the statutory role of the Independent Market Operator in increasing capacity in the south west interconnected system? (2) Why was this announcement made in advance of the 2009 statement of opportunities? (3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER
AnswerView source ↗
I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(1) Will the minister explain how this procurement meshes with the statutory role of the Independent Market Operator in increasing capacity in the south west interconnected system? (2) Why was this announcement made in advance of the 2009 statement of opportunities? (3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(2) Why was this announcement made in advance of the 2009 statement of opportunities? (3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(1) Will the minister explain how this procurement meshes with the statutory role of the Independent Market Operator in increasing capacity in the south west interconnected system? (2) Why was this announcement made in advance of the 2009 statement of opportunities? (3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(2) Why was this announcement made in advance of the 2009 statement of opportunities? (3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(3) Were the IMO and the Economic Regulation Authority consulted, and did they concur with this approach to procurement? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
I thank the honourable member for some notice of the question. (1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
(1)-(3) The government was faced with the very real prospect that Western Australia would be short of capacity in the short term. We were committed to our renewable targets, but as I mentioned in an earlier debate, they would not resolve the issue in the short to medium term. We made the decision to make a significant investment in energy security for Western Australians—that is, $263 million into two 100-megawatt high-efficiency gas turbines, which will be placed in Kwinana, and the recommissioning of Muja A and B. Muja A and B were, of course, retired; they were brought back into service by the previous government as a result of the Varanus Island explosion. They were decommissioned at the end of April 2009. We made, dare I say it, a very visionary decision to invest in Western Australia’s future by having diversification of supplies. With regard to coal, as I mentioned in the earlier debate, it is not a long-term investment. We are ensuring that we have diversity — Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
Hon Kate Doust : Did you consult IMO or ERA? Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
Hon PETER COLLIER : I am going to answer the question. We had to ask, “How can we do that?” At this stage there is a capacity cap, as I am sure the opposition is well aware. Neither of these plants go beyond the capacity cap; they remain within it. There is no issue as far as that is concerned. To answer the member: no, I did not consult either of those bodies.
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