Department of the Legislative Assembly, Northern Territory Government

Dr LIM - 1996-11-21

He has previously announced an agreement for a private power station to be built at Alice Springs to augment the local power supply. When will this project come on stream?

ANSWER

Mr Speaker, I am very pleased to be able to advise that pre- commissioning trials on the new Alice Springs power station begin today. The plan is for the plant to be fully operational in mid-January 1997. Work is on schedule and I believe the target will be achieved easily. This project represents a significant step forward in the Power and Water Authority's increasing use of the private sector to provide infrastructure and services for Territorians.

Members will recall that a 20-year, multimillion-dollar contract was signed in April between the authority and Central Energy Power (CEP). The aim of this contract is to ensure that Alice Springs has sufficient energy capacity for future growth. It is interesting to note that the demand in Alice Springs has grown from 29.7 MW in 1987 to 39 MW in 1996. It is believed that it may reach 41 MW or 42 MW this year. The rate of increase is about 3.5% per annum. Certainly, that contradicts some of the wild claims that members opposite make about a shrinking Territory and a dying economy. One of the best measurements of economic progress is an increase in the use of energy. In the Territory, there is no doubt that that indicator shows the economy is going very well. The Ron Goodin power station in Alice Springs has an existing capacity of 54 MW. The new power station will add a further 8.8 MW to the Alice Springs grid. That capacity will enable us to meet peak loads in summer. There will be the ability to have the largest generating set out of action and still have capacity to spare.

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The new power station is being built at the Brewer Estate, 25 km from Alice Springs. The transmission lines are being constructed at this time by the authority's own southern region staff. I have had a look at the progress being made and they are doing an exceptionally effective job. CEP is a subsidiary of Central Energy Australia which owns and operates the liquefied natural gas plant at the Brewer Estate. Gas will be supplied to the power station from the Palm Valley gasfield via the Palm Valley to Alice Springs pipeline. Negotiations are under way between CEP and the owners of the Dingo gasfield which is about 42 km south of Alice Springs. The aim is to develop that field as the alternative source of gas. If the negotiations are successful, a gas pipeline will be developed from Dingo to the new station. I am confident that Alice Springs residents will recognise that this government is ensuring that they will have an improved electricity supply and surety of supply into the future.

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Last updated: 09 Aug 2016