State to keep watch on water use at power stations

The State Government would continue to maintain a close watch on water use by power stations in south-east Queensland, despite a national report released this week showing an improved electricity supply outlook over the next two summers, Mines and Energy Minister Geoff Wilson said today.

“I’ve been assured that the bulk supply of power to homes and businesses in south east Queensland remains secure,” Mr Wilson said.

The latest report by the National Electricity Market Management Company (NEMMCO) on the impact of the drought on bulk electricity supplies has indicated that a reliable and secure supply of electricity could be maintained until the end of the 2008-09 summer, even if the drought continues.

“It’s heartening and reassuring, but we can’t forget we are still in the grip of the worst drought in recorded history. We have contingency plans to deal with whatever nature throws at the electricity network,” Mr Wilson said.

The first NEMMCO drought report in May this year was based on a near worst-case scenario, and painted a fairly bleak picture for electricity supply in the summers of 2007-08 and 2008-09.

“NEMMCO’s latest report takes into account subsequent rainfall in New South Wales, new generation projects and revised lower demand forecasts.

“The report shows that with careful management of available water supplies in south-east Queensland, it is possible to maintain a reliable and secure bulk electricity supply during the drought.

“Even so, we can’t afford to take our eye off the ball. The amount of water used by power stations will continue to be monitored and water savings measures and energy efficiency initiatives will continued to be implemented.

“The drought and its consequences are being felt right across the eastern states and Tasmania. We’re all in it together,” Mr Wilson said.

Earlier this year, 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. An independent expert was also appointed to double check the work of the taskforce.

“The taskforce concluded that south east Queensland had sufficient supply options from southern Queensland power stations, plus transmission links to Central Queensland and the national grid, to have the ability to reliably meet bulk power demands,” Mr Wilson said.

“The expert advice to the taskforce was 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.

“And the taskforce will continue to work with the power industry on ways to save even more water and to manage available water supplies to ensure a continued reliable and secure bulk electricity supply.

“Despite the brighter outlook in the latest drought report, this is no time to bury our head in the sand. Tough times have called for equally tough measures,” he said.

“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,” Mr Wilson said.

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

“We’ve got generating units on standby at our power stations. They can be ramped up to generate power at full load within 36 hours to meet those days of forecast low reserve.

“Swanbank and Tarong Power stations have taken on water-saving initiatives, including recycling storm water, recycling boiler blowdown water, and building a reverse osmosis water purification plant.

“The new $1.2 billion Kogan Creek Power Station, which is expected to be officially commissioned later this year, uses one tenth of the water of conventional power stations. It will boost the state’s generating capacity to more than 11,250 megawatts, well in excess of the state’s record peak demand,” he said.

“All of these major projects and all of these actions were designed to deliver a secure and reliable power supply to homes and businesses in south east Queensland. A responsible government would do nothing less,” Mr Wilson said.

Media Inquiries: Ellen McIntyre 3225 1819