Western Australia Minister for Energy Peter Collier
New Opportunities For Private Sector Investment In State’s Energy
Victor P Taffa
New opportunities for Private Investment in the Western Australian Energy Sector should continue to emerge during the next decade.
Energy Minister Peter Collier has provided this assurance, following last week’s signing of the new Vesting Contract between Synergy and Verve Energy, with almost 1,800 megawatts of capacity being available for private investors through to 2020-21.
Replacing the Vesting Contract was a key recommendation of a review into Verve Energy’s financial position, carried out by Peter Oates.
“Based on the Independent Market Operator’s (IMO) 2010 Statement of Opportunities and the Summary of Approved Capacity for the 2010 Reserve Capacity Cycle, an additional capacity of 1,772 megawatts will be needed to service demand growth and replace retiring plant from 2012-13.” Mr. Collier said.
“This provides an ideal opportunity for the private sector to meet this load growth and develop renewable energy generation projects to satisfy renewable energy target requirements.”
The Minister said Synergy would have shortages of energy, capacity and renewable energy from 2014 and would soon be looking to contract for these.
He said the replacement Vesting Contract was for the remainder of energy contained in the displacement schedule, which would be allocated to Verve Energy.
“This new contract will not affect capacity credit payments to private sector generators, nor will it impact the IMO’s calculation of the Reserve Capacity Price.” Mr. Collier said.
“The new contract will save WA up to $1.5 Billion over 10 years, allowing Verve to understand its financial position and plan for its future, while also ensuring that taxpayer funded generation assets will not be stranded.”
“The Liberal-National Government is looking after the interests of the WA community and helping to ensure greater security of Electricity Supply.” Mr. Collier said.