Northwest Queensland energy delivery

Background

The Northern Economic Triangle Infrastructure Plan 2007-2012 recognises that the availability of secure and competitively-priced energy is critical to the North West Minerals Province realising its full potential. The Queensland Government, in partnership with the Queensland Resources Council, commissioned an independent review of North West Queensland’s energy delivery (Sims Review) on 26 November 2008.

The aim of the review was to provide information and advice to government and the Queensland Resources Council on:

  • strategic, efficient energy infrastructure development proposals that provide reliable, competitively–priced energy to the North West Minerals Province and maximise social, environmental and economic benefit to the Northern Economic Triangle (NET) region and the state
  • a recommended delivery model which provides the best opportunity for commercial viability and risk mitigation.

The review evaluated the underlying economics of long-term gas and power transmission proposals and the other issues likely to affect the viability and operability of these options. Due to a number of uncertainties involving gas, power generation, transmission and renewable technologies, the review was unable to identify a superior option.

Way forward

The Queensland Government accepted the review findings and on 26 August 2009 announced the commencement of a government facilitated, 12-month customer-driven competitive process to deliver a long-term energy solution for the region. During this process, project proponents interested in supplying energy to the region would need to secure financial commitments from major regional energy customers. They would also be required to undertake detailed work to prepare formal offers which will allow energy customers to assess the optimum long-term energy solution to meet their energy requirements.

North West Queensland Energy Delivery timeline table

Progress

In June 2010, an important milestone was achieved in the customer-driven competitive process. Major energy customers advised the Queensland Government that the CopperString project had been selected to conduct a detailed feasibility study on a project that proposes the construction of a power transmission line to connect the north west region to the national electricity grid near Townsville. The Coordinator-General has also declared the CopperString project to be a Significant Project for which an environmental impact statement is required under Part 4 – 8 of the State Development and Public Works Organisation Act 1971.

The Sims Review also identified other potential power generation solutions including an upgrade of CS Energy’s Mica Creek Power Station as an option for future power supply to the region, while leaving the door open for other parties to develop alternative generation solutions. Two other proponents offering gas-fired generation energy continue to develop their potential solutions as part of the customer-driven competitive process.

To ensure that all potential energy solutions have the best possible chance of success, the Queensland Government is working with proponents and customers during the competitive process to remove, where possible, investment and regulatory barriers and to facilitate approvals necessary to support the delivery of an energy solution. It is anticipated that by the end of 2010, or early 2011, major North West Queensland energy customers will be in a position to assess the best solution for their long-term energy requirements.

Resources