Provided the market for electricity was "fair", AlintaGas said the proposed power station should deliver cheaper electricity to WA customers by increasing the competition for the strong incumbent, Western Power.
However, one of the partners in the study, NRG Asia-Pacific, looks likely to exit the Australian power market after a decision by its American parent company to restructure its balance sheet. "While NRG would have been a great partner, there are power producers who have approached us seeking to take up the opportunity," said AlintaGas chief executive officer, Mr Bob Browning. "We see no difficulty in selecting from these another well qualified partner."
