Dr Gallop asks the Premier to guarantee that a contract for a gas-operated power station at Derby will not be signed before the release of the Federal Government's due diligence study. The Premier responds that the Federal Government's report will be available before Cabinet makes a decision.

AnsweredQoN 16Legislative Assembly
Asked
9 August 2000
Member
Portfolio
Premier

QuestionView source ↗

Will the Premier guarantee that a contract for gas-operated power station at Derby will not be signed before the release of the Federal Government's due diligence study? Mr COURT

AnswerView source ↗

I have answered this question. I have said that the Federal Government told us that it would bring down its report this week. In that case it will be before Cabinet makes a decision on these matters. We have released the findings of the independent study on this matter. It might be opportune for me to explain that a number of issues are associated with this regional procurement strategy. The tidal power proposal is interesting in that it has a maximum generating capacity of 48 megawatts. As the report that has been released indicates, that capacity can decrease to 6 to 10 megawatts for two to three days every fortnight with neap tides. There is an average usage at the beginning of about 25 megawatts. In effect there must be a dual system. In this case, the proponent is proposing a diesel system - the current government system - which will be replaced by gas turbines 10 years down the track. A town like Broome needs a full backup for its maximum capacity, so a dual system must be in place. Members would appreciate that it is much easier to feed wind power into an existing grid, as we do at Esperance and are about to do at Albany. It is a complicated proposal. As the proponents said, it requires in excess of $100m of state and federal subsidies to make it work. We did not say to the proponents that there is up to $120m in subsidies. If that issue were raised during a process, members opposite would be the first to accept that it would be absolutely scandalous to pick one of those proponents and say that there might be a subsidy and then give that proponent a guernsey.
Mr COURT replied: I have answered this question. I have said that the Federal Government told us that it would bring down its report this week. In that case it will be before Cabinet makes a decision on these matters. We have released the findings of the independent study on this matter. It might be opportune for me to explain that a number of issues are associated with this regional procurement strategy. The tidal power proposal is interesting in that it has a maximum generating capacity of 48 megawatts. As the report that has been released indicates, that capacity can decrease to 6 to 10 megawatts for two to three days every fortnight with neap tides. There is an average usage at the beginning of about 25 megawatts. In effect there must be a dual system. In this case, the proponent is proposing a diesel system - the current government system - which will be replaced by gas turbines 10 years down the track. A town like Broome needs a full backup for its maximum capacity, so a dual system must be in place. Members would appreciate that it is much easier to feed wind power into an existing grid, as we do at Esperance and are about to do at Albany. It is a complicated proposal. As the proponents said, it requires in excess of $100m of state and federal subsidies to make it work. We did not say to the proponents that there is up to $120m in subsidies. If that issue were raised during a process, members opposite would be the first to accept that it would be absolutely scandalous to pick one of those proponents and say that there might be a subsidy and then give that proponent a guernsey.
I have answered this question. I have said that the Federal Government told us that it would bring down its report this week. In that case it will be before Cabinet makes a decision on these matters. We have released the findings of the independent study on this matter. It might be opportune for me to explain that a number of issues are associated with this regional procurement strategy. The tidal power proposal is interesting in that it has a maximum generating capacity of 48 megawatts. As the report that has been released indicates, that capacity can decrease to 6 to 10 megawatts for two to three days every fortnight with neap tides. There is an average usage at the beginning of about 25 megawatts. In effect there must be a dual system. In this case, the proponent is proposing a diesel system - the current government system - which will be replaced by gas turbines 10 years down the track. A town like Broome needs a full backup for its maximum capacity, so a dual system must be in place. Members would appreciate that it is much easier to feed wind power into an existing grid, as we do at Esperance and are about to do at Albany. It is a complicated proposal. As the proponents said, it requires in excess of $100m of state and federal subsidies to make it work. We did not say to the proponents that there is up to $120m in subsidies. If that issue were raised during a process, members opposite would be the first to accept that it would be absolutely scandalous to pick one of those proponents and say that there might be a subsidy and then give that proponent a guernsey.

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