To reduce electricity generation costs in regional Western Australia, a series of power procurement processes have been conducted since 1998. This process included a competitive tender process to contract Independent Power Producers to supply bulk electricity to the former Western Power Corporation for distribution to its customers. The procurement process also provided an opportunity to benefit from new technology and fuel sources in these regions.
The Independent Power Producers are also an alternative source of electricity suppliers for large consumers (those who consume more than 300,000 kilowatts each year) who can be supplied by third parties through open access arrangements. On 1 January 2005, the threshold level was decreased to 50,000 kilowatts per annum.
Energy Generation Pty Ltd (formerly StateWest Power Pty Ltd) has constructed six new power stations in the Mid West towns of Mt Magnet, Meekatharra, Cue, Yalgoo, Wiluna and Sandstone. These power stations were officially opened on 14 November 2003. Energy Generation Pty Ltd has a 10 year contract to supply Western Power.
A new gas-fired power station was constructed in Esperance on land at the Esperance Port Authority. The power station is owned and operated by Esperance Power Station Pty Ltd (a subsidiary of Burns and Roe Worley). The contract term with Western Power is for 18 years.
To supply fuel to the new power station, a gas pipeline, the Kambalda to Esperance Gas Pipeline measuring 340km in length was constructed.
The power station was officially opened on 23 April 2004.
Further information on the project is available from Esperance Power Station Pty Ltd's website.
The former Western Power, now Horizon Power, entered an 18 year Power Purchase Agreement with Exmouth Power Station Pty Ltd (a subsidiary of Burns and Roe Worley) on 10 September 2003.
This agreement allows for the construction of a new gas-fired power station in Exmouth fuelled by compressed natural gas. The Independent Power Producer is in the process of satisfying all the conditions precedent within the agreement, before construction of the new power station can commence.
Horizon Power is conducting a power procurement project for new power stations in the towns of Broome, Derby, Fitzroy Crossing, Halls Creek and Camballin/Looma.
Negotiations of a Power Purchase Agreement are underway with Energy Developments Ltd (a publicly listed company based in Queensland).
Further information on this project is available on Horizon Power's web site.
