Power supply secure in drought-troubled times

Queensland’s Energy Minister Geoff Wilson said today that contingency plans were in place to deal with the worsening drought and its impact on electricity supplies in south east Queensland.

The Minister said the state’s most vital commodities, water and power, were under increasing pressure from the drought.

“But the State Government is prepared for the worst and has plans in place to deal with whatever nature throws up,” Mr Wilson said.

“I’ve been assured the bulk supply of power to homes and businesses in south east Queensland will be secure,” he said.

A report by the National Electricity Market Management Company (NEMMCO) on the impact of the drought on bulk electricity supplies was tabled today at a Ministerial Council on Energy meeting in Melbourne.

“The NEMMCO report paints a bleak picture, but its assessment is based on a near worst-case scenario,” Mr Wilson said.

Several months ago, the Minister set up a special taskforce made up of key stakeholders from across government and industry to analyse in depth what the drought meant for electricity.

“The expert advice to the taskforce is based on a range of complex estimates and assumptions, including hydrology modelling. The taskforce meets regularly and monitors the situation every step of the way,” he said.

“We will shortly appoint an independent expert to double check the work we have done,” Mr Wilson said.

“People who are living and working with the threat of more long, hot summers can draw comfort from advice provided to the taskforce.

“The taskforce was told that south east Queensland has sufficient supply options from southern Queensland power stations, plus transmission links to Central Queensland and the national grid to give us the ability to reliably meet bulk power,” he said.

“Having said that, this is no time to bury our head in the sand. Tough times have called for equally tough measures.

“Earlier this year, we directed power stations in south east Queensland to scale back their generating power to save water from Wivenhoe Dam until the recycled water pipeline comes on line.

“As a result, significant water savings are being achieved while the security of electricity supplies are maintained.

“We’ve had to strike the right balance between providing a secure and reliable electricity supply and meeting the water needs of the people of south east Queensland.

“The drought and its consequences are being felt right across all the eastern states and Tasmania. We’re in it together, and Queensland, like other the states, has its eye on the ball.

“We are actively working with the power industry on ways to save water and maintain a reliable and secure bulk electricity supply.

“While I welcome the NEMMCO report and will refer it to the taskforce and our independent expert, it does not take into account new power-generating projects on the drawing board in Queensland and New South Wales,” he said.

“The NEMMCO assessment also doesn’t take into account those generating units on standby at our power stations. They can be ramped up to generate power at full load within 36 hours to meet the days of forecast low reserve.

“South East Queensland electricity supplies are drawn from the national electricity grid which services eastern Australia.

“While power stations closest to the major population centres of the south east are important in maintaining a reliable supply, they don't operate in isolation.

Power to SEQ is supplied from:

• 9 power stations in Southern Queensland,
• power stations in Central Queensland through major transmission lines, and
• power stations elsewhere in eastern Australia through the two inter-connectors to NSW.

Southern Queensland Power stations which aren’t affected by directions on the use of Wivenhoe water include:

• Braemar 450 MW
• Oakey 276 MW
• Millmerran 860 MW
• Roma 54 MW

Later this year, they will be joined by the new 750 MW Kogan Creek Power Station, an air-cooled power station that uses one tenth of the water of its wet-cooled counterparts, with water drawn from sub-artesian bores.

The Minister said there was a range of other projects on the drawing board to boost the state’s generating capacity in years to come.

These include the 1,000 megawatt Spring Gully proposal by Origin Energy, the Australian Gas Light company’s 370 megawatt proposal near Townsville, Origin Energy’s second 500MW gas-fired power station at Braemar and Queensland Gas Company’s 140MW gas-fired power station at Condamine.

“There are additional projects, which, if found to be commercially viable, will deliver an additional 2,000 megawatts of generating power,” he said.

“By taking all of our current generating capacity into account, along with the 700 MW on standby, our reserve capacity is well above the national electricity market standards.

“However, we will take NEMMCO’s assessment on board and consult with Queensland generators to ensure they take those forecasts into account when planning additional supply over the summer period.

“A responsible government would do nothing less. We will also establish a working party of senior energy officials from Queensland and New South Wales to monitor issues raised in the NEMMCO report,” he said.

Media Inquiries: Ellen McIntyre 3225 1819