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The modernisation of the energy industry:
Government and industry reforms intensified the search for new energy sources to supply Western Australia’s increasing electricity demand. The widespread reform of power utilities was recommended by the Australian Industry Commission in 1990. Three years later, the State Energy Commission of Western Asutralia (SECWA) was the only power utility in Australia which was responsible for both gas and electricity. At this time, the new Liberal-National Party Coalition State Government chose to split SECWA into two organisations. One company would be responsible for the electricity industry, while the other organisation would supply the state’s gas needs.
The task of splitting SECWA, a business with a turnover of nearly $2 billion a year and nearly 5,000 employees, was a daunting one. In January 1995, SECWA was split into two new energetic and corporatised businesses – Western Power Corporation (electricity) and AlintaGas (gas).
An increasing number of private energy companies began to operate in Western Australia. In response to the rising electricity demand and growing competition, Western Power opened a new power station in Kwinana in October 2003. The Cockburn Power Station became the first combined cycle plant which operated on natural gas from the North West Shelf. The facility is now owned and operated by Verve Energy. Cockburn One can generate 160MW of power from a gas turbine and a further 80MW of electricity from a steam turbine. This provides enough electricity to power four million light globes (using an average light bulb of 60 watt capacity).

Above - The main stack at Cockburn One Power Station.
Source: Verve Energy.
On 3 March 2004, Western Power Corporation signed an agreement to secure long-term supplies of natural gas from the North West Shelf. Under the agreement, the North West Shelf joint venturers will supply 700 petajoules of gas over a period of up to 20 years. In 2004, Western Power was using about 40 petajoules of natural gas each year in power stations.
NewGen Power Pty Ltd is planning to open a new gas-fired power station in Kwinana in 2008. The $400 million, 320MW NewGen Kwinana Power Station will provide electricity into the SWIS. The location of the power stations in Kwinana is of strategic importance to the state's power generation because they are conveniently accessible to an established transmission infrastructure, as well as to cooling water from the ocean and natural gas fuel supply pipelines.
Further energy reforms were progressively introduced by the State Government to create more competition in the marketplace. During 2005, Western Power Corporation was a “dual fuel” supplier which provided both gas and electricity to businesses that spend about $16,000 per annum on gas (currently 1 terajoule per annum). These customers are connected to the Dampier/Bunbury natural gas pipeline and/or the Alinta distribution network.
Western Power Corporation’s gas business is now integrated within Synergy to provide a seamless customer service.
For more information, go to:
http://www.synergyenergy.com.au
Next Section >> Natural gas powers up regional WA.
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