❓ Hon Paul Llewellyn questions the Premier regarding the factors considered in choosing between gas and coal for WA's base load generation, particularly concerning sustainability, cost, and the application of these considerations to Western Power in comparison to the broader industry. The Premier's response refers to another question.
AnsweredQoN 2548Legislative Council
QuestionView source ↗
With regard to statements made in October 2004, during an interview on Channel 10 regarding the choice between gas and coal for Western Australia’s base load generation facility, the Premier stated that, ‘When we make our decision it will be based on the principles of sustainability, social, economic and environmental factors’. On June 15
The West Australian
reported the Premier as stating that ‘several other factors other than cost would be considered (in choosing between the gas and fuel options) -
(1) Given that Western Power Corporation is required to make it decision based on commercial principles, subject only to the safety and reliability of the system, can the Premier provide a complete list of what ‘other factors’ will be considered by the Government?
(2) Will the Premier explain how their relative importance will be assessed and provide information regarding what assessment framework will be utilised?
(3) What methodology will be used, for example, a cost-benefit analysis or a multi-criteria assessment, for choosing the next base load station, following the receipt of Western Power Corporation’s recommendation?
(4) Can the Premier advise to whether the Government’s assessment in support of its final decision will be available to the public?
(5) Will the inevitable future cost on CO
2
emissions be factored into any cost assessment of the two options?
(6) If not, why not?
(7) Given that Western Power will enter into a 25 year contract with the successful proponent, does the Premier agree that the additional costs from a price on CO
2
that a coal-fired generator would accrue, even at the current price of CO
2
in the European Trading Market, would represent a significant financial burden to Western Power, that they would have to pass on to consumers?
In this House on August 25 2004, in response to proposed amendments to incorporate the principles of ecologically sustainable development (ESD) into Western Power’s governing legislation, the Member for Mining and Pastoral, Hon Tom Stephens explained that ‘The proposed amendments will go further to impose certain sustainable development objectives on Western Power. One problem with this, I hope everyone will recognise this, including Hon Robin Chapple, is that it will impact only on Western Power, not the sector as whole. The Government is of the view that if new sustainable energy outcomes are to be established, they need industry-wide application. We cannot simply pick out Western Power.’
(8) Given this explanation, can the Premier clarify why ‘the need to diversify Western Australia’s sources of power, security of supply and regional employment’ (as the Premier mentioned on June 14 2005), should be required of Western Power when they will not apply to the industry as a whole?
The West Australian
reported the Premier as stating that ‘several other factors other than cost would be considered (in choosing between the gas and fuel options) -
(1) Given that Western Power Corporation is required to make it decision based on commercial principles, subject only to the safety and reliability of the system, can the Premier provide a complete list of what ‘other factors’ will be considered by the Government?
(2) Will the Premier explain how their relative importance will be assessed and provide information regarding what assessment framework will be utilised?
(3) What methodology will be used, for example, a cost-benefit analysis or a multi-criteria assessment, for choosing the next base load station, following the receipt of Western Power Corporation’s recommendation?
(4) Can the Premier advise to whether the Government’s assessment in support of its final decision will be available to the public?
(5) Will the inevitable future cost on CO
2
emissions be factored into any cost assessment of the two options?
(6) If not, why not?
(7) Given that Western Power will enter into a 25 year contract with the successful proponent, does the Premier agree that the additional costs from a price on CO
2
that a coal-fired generator would accrue, even at the current price of CO
2
in the European Trading Market, would represent a significant financial burden to Western Power, that they would have to pass on to consumers?
In this House on August 25 2004, in response to proposed amendments to incorporate the principles of ecologically sustainable development (ESD) into Western Power’s governing legislation, the Member for Mining and Pastoral, Hon Tom Stephens explained that ‘The proposed amendments will go further to impose certain sustainable development objectives on Western Power. One problem with this, I hope everyone will recognise this, including Hon Robin Chapple, is that it will impact only on Western Power, not the sector as whole. The Government is of the view that if new sustainable energy outcomes are to be established, they need industry-wide application. We cannot simply pick out Western Power.’
(8) Given this explanation, can the Premier clarify why ‘the need to diversify Western Australia’s sources of power, security of supply and regional employment’ (as the Premier mentioned on June 14 2005), should be required of Western Power when they will not apply to the industry as a whole?
AnswerView source ↗
Answered
20 September 2005
Responded by
Leader of the House representing the Premier
Response time
26 days
Please refer to question on notice 2539.
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