A new power station in Naval Base opened this afternoon, ensuring a capacity boost of 10 per cent to Western Australia's power supplies.
The NewGen Kwinana Power Station is a natural gas-fire plant that will generate 320 megawatts of power using low-emission technology.
The project will bring an estimated economic benefit in excess of $1 billion to the region during its operating life and will supply power round-the-clock, providing critical extra capacity into the South-West Interconnect System (SWIS).
Power station owner, NewGen is a joint venture between ERM Power and Babcock and Brown Power.
ERM, a private energy company, has invested $800 million into the WA energy market through the Kwinana power station and the construction of a 330MW open cycle gas turbine peaking power station in Neerabup, north of Perth.
The output from NewGen Kwinana power station is contracted to WA's major electricity retailer, Synergy, from 1 December 2008.
NewGen Power Kwinana Chairman Trevor St Baker said the power station was among the most efficient in the country, and was helping Western Australians reduce their carbon footprint.
Officially opened by the Minister for Energy, Peter Collier who commented that the 'combined cycle' plant, with electricity produced from gas and steam, would deliver power with less than half the greenhouse gas emissions of coal.
"This power station is a timely addition to the South-West power grid and will also help meet the Government's objective of improving power reliability across the State," Mr Collier said.
"It will provide Synergy with a considerable boost to its peak demand capacity for the upcoming summer, when demand increases significantly, as well as meet current day-to-day energy requirements within the South-West grid.
"Private developments such as this highlight the fact that competition is continuing to develop in the wholesale electricity market, designed to ensure Western Australians have reliable and cost-effective electricity."
