WESTERN Power has begun preparations for a $318 million upgrade of transmission lines between Perth and Eneabba considered vital to the Mid West's emerging iron ore and renewable energy sectors.
WESTERN Power has begun preparations for a $318 million upgrade of transmission lines between Perth and Eneabba considered vital to the Mid West's emerging iron ore and renewable energy sectors.
The utility today lodged a notice with the Economic Regulation Authority seeking public submissions on its plan to construct a 330-kilovolt power line to Eneabba for which the state government provisionally allocated $318 million in this year's budget.
The upgrade will replace the existing 132kv line to Eneabba and is vital to ensure effective power delivery to the Mid West's emerging mining industry, including future expansion of the $2 billion Karara magnetite project now under construction.
It will also enable prospective renewable energy producers in the region to supply energy to the metropolitan region and big industrial customers in the state's south-west.
The government has provisioned $47.1 million for the project this financial year, $244 million in 2011-12, and $27.8 million the following year.
But the funding remains conditional on government and regulatory approvals, including the government signing off on Western Power's business case for the investment.
In its proposal document lodged with the ERA, Western Power has estimated the net present cost of completing the 330kv upgrade to Eneabba at between $268 million and $282 million.
Once the stage one upgrade is under way, Western Power hopes to undertake a $280 million second stage to extend the line to Geraldton and the Oakajee deepwater port and industrial estate.
The stage two expansion will be needed to supply power to large scale iron ore developments to the north-east of Geraldton, such as Sinosteel Midwest's big Weld Range project and the 35 million tonnes per annum Jack Hills project planned by Murchison Metals and Mitsubishi.
Both are slated to start production in 2014, when the $4 billion Oakajee port and rail development are expected to be complete.
No funding for stage two has yet been allocated, though the state government did nominate the project for the next round of Infrastructure Australia funding.
According to Western Power's ERA submission, peak load demand in the Mid West could rise six fold to around 650 megawatts by 2017 should all major projects proceed. Under its mid-range forecast, it expects peak load demand to more than double to 250 MW by 2013.
At a WA Business News forum in May, City of Geraldton-Greenough chief executive Tony Brun said the 330kv line was the key to unlocking the region's full potential.
"Without it, nothing happens," he said. "Oakajee as an industry precinct is not a reality, the mines aren't a reality, but most importantly from our point of view, the development of our region as an energy region is not a reality."
Submissions on the proposed upgrade must be lodged by August 4. Western Power will also be holding public forums on the upgrade in Perth, Geraldton and Three Springs.
Subsequent to the consultation process, it will then submit its final upgrade proposal to the ERA for certification under the state's access code.
