Gas turbine go-ahead good news

Verve Energy today welcomed the State Government’s financial support to build high efficiency gas turbines (HEGT) for the 2012 summer.

Managing Director Shirley In’t Veld said the two HEGTs would add 200MW of state of the art, mid-merit, gas-fired generation to the WA power system when it would be needed.

“This additional capacity will ensure there’s enough power to meet WA’s needs at a time when there is uncertainty about investment in the WA electricity system,” Ms In’t Veld said.

“The global economic downturn and the proposed Carbon Pollution Reduction Scheme are causing investors to delay making commitments to build power stations.

“In turn this creates the risk of potential power shortages in the near future.

“Verve Energy has the expertise and the capability, with State Government support, to help the WA economy through this challenging period until credit markets improve and there is certainty in relation to the CPRS.

“The State Government decision is a vote of confidence in Verve Energy, our people and our commitment to continue as a significant player in the competitive electricity market.”

The State Government also endorsed Verve Energy’s proposal to pursue a joint venture for a $100 million life-extension program on Muja Power Station Stages A and B.

The proposed joint venture will involve the refurbishment of the four 60MW coal-fired generating units to acceptable environmental standards by 2012, with an operating life of up to 15 years.

This will allow time for new clean coal technology to be developed while ensuring the security of power supplies in WA during this transitional period to a low carbon economy.

Ms In’t Veld said that, once again, this project is a testament to Verve Energy innovation in the interests of all Western Australians and the WA economy.

11 May, 2009

CONTACT REFERENCE – PETER WINNER 9424 1977

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