❓ A WA parliamentary question probes the government's decision-making process regarding the choice between gas and coal for a base load generation facility, focusing on transparency, sustainability, and the consideration of CO2 emission costs. The Minister's response outlines Western Power's obligations and the government's assessment process, while also addressing concerns about industry-wide application of sustainable energy outcomes.
AnsweredQoN 2539Legislative 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 that 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 Minister provide a complete list of what other factors will be considered by the Government?
(2) Will the Minister 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 Minister 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 Minister 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 Minister 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 that 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 Minister provide a complete list of what other factors will be considered by the Government?
(2) Will the Minister 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 Minister 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 Minister 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 Minister 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
13 September 2005
Responded by
Leader of the House representing the Minister for Energy
Response time
19 days
When procuring new generation Western Power must seek to minimise the total delivered cost of electricity, subject to maintaining the reliability and safety of the electricity system. Following completion of its evaluation Western Power was then obliged to seek the Minister for Energy's approval, in accordance with Section 34 of the Electricity Corporation Act 1994 , to enter into the transactions associated with the outcome of its statutory process. The Minister for Energy had the right to approve or not approve the request from Western Power. Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
Following completion of its evaluation Western Power was then obliged to seek the Minister for Energy's approval, in accordance with Section 34 of the Electricity Corporation Act 1994 , to enter into the transactions associated with the outcome of its statutory process. The Minister for Energy had the right to approve or not approve the request from Western Power. Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
The Minister for Energy had the right to approve or not approve the request from Western Power. Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
Following completion of its evaluation Western Power was then obliged to seek the Minister for Energy's approval, in accordance with Section 34 of the Electricity Corporation Act 1994 , to enter into the transactions associated with the outcome of its statutory process. The Minister for Energy had the right to approve or not approve the request from Western Power. Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
The Minister for Energy had the right to approve or not approve the request from Western Power. Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
Approval was granted because the Government did not consider that the outcome of the process had given rise to any overwhelming issues that would be against the interest of the State as a whole. (2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(2) Not applicable. (3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(3) Refer to Question 2. (4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(4) It would be inappropriate to make public Western Power's commercial evaluation of the proposals. The Government's assessment was a matter for Cabinet consideration. (5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(5) Western Power evaluated a range of possible future scenarios to determine the impact upon the total delivered cost of electricity of different proposals. These scenarios included some scenarios to which a range of future cost estimates for carbon dioxide emissions were applied. (6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(6) Not applicable. (7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(7) Introduction of a cost for carbon dioxide emissions will increase the costs of electricity generation from fossil fuels, which will likely be passed onto consumers. (8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
(8) Security and diversity of electricity supply can impact on the reliability of the electricity system and as such were matters to be considered by Western Power in accordance with its statutory obligations. As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
As a result of the Government's energy reforms, the commencement of the wholesale electricity market will see the Independent Market Operator placing requirements on the whole industry to ensure the reliable supply of electricity. Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
Regional employment is not an issue that Western Power's procurement process was required to consider in its evaluation process.
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