By early 2004, Western Power expects to finalise a $600 million power purchase agreement with ENE to supply electricity in Broome (29MW), Derby (10MW), Fitzroy Crossing (3.2MW), Halls Creek (2.7MW) and Camballin-Looma (800KW) for the next 20 years.
The initial installed generating capacity for all five power stations will be 46 MW growing to a forecast 75 MW at the end of the 20-year term.
The other short listed bidder, Kimberley Power, which is led by Maurice Brand the head of the previous developer, Energy Equity, has been invited to become the reserve bidder.
The electricity for each station will be generated by Caterpillar reciprocating natural gas engines while a liquefied natural gas (LNG) plant will be built near Karratha and natural gas will be supplied by the East Spar Joint Venture gas sellers, via the Dampier to Bunbury Natural Gas Pipeline (DBNGP).
"The new power stations will utilise the company's low noise and energy efficient modular design. The power stations will be environmentally friendly, fuelled by natural gas and utilising Caterpillar's low emission product range," said ENE's managing director Chris Laurie.
The Western Australian Minister for Energy, Eric Ripper said the deal would halve Western Power's current losses of about $20million a year in the region.
Energy Development will invest more than $100million in the power stations and fuel infrastructure with up to 50 jobs will be created during the construction phase, along with a 16-strong, permanent full-time workforce in the region upon completion.
Replacing the diesel stations is also expected to deliver a 21% reduction in greenhouse gas emissions.
