New kink in Crosslands power plan

FRESH doubts have emerged over the timing of a major upgrade of transmission lines to Geraldton, after one of the region’s biggest future power consumers said it would build its own power station.

Iron ore miner Crosslands Resources this week released its Public Environmental Review documents for the proposed $2 billion expansion of its Jack Hills iron ore mine, 400 kilometres north east of Geraldton, planned by 2014.

The review identifies an on-site 350 megawatt gas-fired power station as “the most economic and environmentally acceptable power solution” due to the mine’s isolation and expense of running a 330 kilovolt transmission line from Geraldton.

Crosslands’ decision poses fresh questions about a $600 million upgrade of transmission lines between Perth and Geraldton widely seen as crucial to the region’s long term energy needs and to enable proposed renewable energy projects in the region to supply metropolitan customers.

To date, the government has only provided a provisionary allocation of $318 million to install a 330 kilovolt power line between Perth and Eneabba, slated for completion in 2013.

But no funding or timing has yet been finalised for a $280 million further extension of the line to Geraldton and Oakajee.

A spokesman for Western Power said the utility had applied to Infrastructure Australia for funding the stage two extensions, which also remained subject to a viable business case based on regional load growth.

But in a response to public submissions on its upgrade plans last month, the utility noted that other alternatives to the stage two upgrade were now under consideration, including reinforcing the existing 132kv line to Geraldton even though that may not cater for renewable energy proponents.

City of Geraldton-Greenough chief executive Tony Brun said he was aware of Crosslands’ proposal and lamented there was no “integrated energy master plan” for the region.

“As such (there is) no compulsion for proponents to work in an integrated manner,” he said, adding that the 330kv upgrade to Geraldton was “essential infrastructure” if the region was to become WA’s premier supplier of clean energy.

Opposition energy spokeswoman Kate Doust said the matter highlighted the effect of the state government’s failure to invest in crucial Mid-West energy infrastructure in a timely fashion, which “continues to provide uncertainty for companies such as Crosslands”.

But state energy minister Peter Collier said Crosslands’ decision would likely have little bearing on the upgrade to Geraldton given the forecast growth in Mid-West energy demand.

Mr Collier added that approval of the stage one upgrade to Eneabba would happen “very shortly”.