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ERM Power has today been given the green light to build a $700million, gas-fired power station in central western New South Wales (NSW) to strengthen the future of the state's power supply with cleaner electricity.
The power station at Wellington, 50km south of Dubbo, will add 640MW of capacity into the New South Wales grid from 2011-12, using natural gas as fuel.
The project has been given final approval by the NSW Department of Planning, and designated as a critical infrastructure development.
Its announcement comes only weeks after the commissioning of the last ERM-developed plant in NSW, the 640MW Uranquinty Power Station which is now owned by Origin Energy.
ERM Power managing director Philip St Baker said the additional peak capacity presented valuable hedge cover for existing retailers, especially ahead of the NSW Government sale of retailers Integral Energy, Energy Australia, and Country Energy.
"This is a big win both for investment in NSW and for the environment," Mr St Baker said.
"Gas-fired generation is leading the way in delivering vital, reliable capacity, while reducing the nation's carbon emissions intensity."
The station will provide five per cent of the State's peak electricity demand. While doing so, it will generate about 30 per cent less greenhouse gas and other pollutants, and use 90 per cent less water, than a traditional, coal-fired power station.
The NSW Planning Minister, Kristina Keneally ERM Power had proven its credentials in the state with the successful delivery of the Uranquinty Power Station, which is currently providing reserve power to the grid during peak times.
Ms Keneally said the need for extra generating capacity was clear and securing the State's energy supply with a modern, efficient gas-fired power station was great news for the Central West.
"The new gas-fired peaking power station at Wellington will produce less than half the carbon dioxide emissions per unit of energy than the current Australian energy sector average," Ms Keneally said.
"The Owen Inquiry into Electricity Supply in NSW and the 2008 Statement of Opportunities, published by the National Electricity Market Management Company, highlighted additional generating capacity is a real and necessary requirement to ensure a secure future energy system for the State.
"This critical piece of State infrastructure will not only secure energy supplies during peak times but also highlights the Government's commitment to delivering sustainable infrastructure to underpin growth in regional jobs and investment."
Mr St Baker said the township of Wellington was set to particularly benefit from the investment, with jobs during construction set to peak at 300, and with up to 10 permanent jobs created on-site.
"It is major projects like this that will help give the local economy a much-needed boost. We anticipate that the Wellington Power Station will contribute $100million to the local economy during its construction," he said.
ENDS
For more information: Margaret Lawson (ERM) on 07 3221 2220 or 0419 643 243
Karl Schubert (Minister's office) on 02 9228 5811 or 0429 904 937