Towns in Western Australia’s Mid-West region are now benefiting from a reliable new power supply which Horizon Power forecasts will save millions of dollars over the life of the contract.
Energy Minister Mike Nahan today announced that the six new power stations had now been commissioned in the towns of Cue, Meekatharra, Yalgoo, Wiluna, Sandstone and Mount Magnet.
This follows the announcement last year of a new power purchase agreement with Western Australian-based Contract Power Australia for the supply of electricity to the Mid-West.
Six new diesel-fired power stations, including one temporary power station which will be replaced with a gas-fired power station in the coming months, have been funded and delivered on time by Contract Power Australia ahead of the end of the contract with the existing supplier.
The new contract gives Horizon Power improved flexibility, including the ability to augment supply with other generation sources, particularly renewable energy sources.
Dr Nahan said the Mid-West project was evidence of Horizon Power’s streamlined project delivery model which had resulted in six new power stations being delivered in just over six months.
“Horizon Power, along with their engineering and project management partner GHD, has achieved savings in the procurement of power for the Mid-West region using an innovative and improved contract model,” he said.
The Minister said the project - and the millions it would deliver in savings - was the result of the strategic review undertaken by Horizon Power to reduce the State Government’s subsidy to the utility by $100 million.
“This new contract will deliver millions of dollars in savings to both Horizon Power and ultimately taxpayers in the form of reduced subsidies over the life of the contract,” he said.
- Horizon Power undertook a strategic review in 2013 following consultation with the Government and identified that it could reduce its operating costs significantly
- Mid-West region towns are now benefiting from a reliable new power supply which Horizon Power forecasts will save millions of dollars over the 10-year life of the contract
- The six power stations to have improved fuel efficiency and make available more than 7,600 kilowatts of electricity generation capacity for customers in the Mid-West
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