Edge of Grid development - Ravensthorpe
Release Date: 22 February 2007
Joint approach to electricity supply at the edge of the grid - Ravensthorpe
Electricity supply to provide for expected industrial growth and new land releases in the Ravensthorpe area is to be catered for by a new joint approach to fund short term solutions and a new 'peak lopping' power generation plant to be operating by June 2008.
Western Power General Manager Mr Mark de Laeter said developers will be able to lodge applications once a new capital contributions policy was finalised.
"Western Power is working with the Office of Energy and the Economic Regulation Authority to devise a new and more equitable approach to meeting the power needs of developers on the edge of the electricity grid.
"For developers who have already lodged applications there are a range of short term power solutions but the matter of who pays for them has caused some delays to solving the issue.
"Now that Western Power operates under a regulatory regime, a joint approach involving the regulator and the government's energy advisory body was required.
Developers planning to open up land in the Ravensthorpe area will be able to lodge applications to proceed once a new joint funding approach to supplying electricity infrastructure is finalised.
The innovative funding approach is the centre of discussions between Western Power, the Office of Energy and the Economic Regulation Authority.
The aim of the new joint approach is to provide a more equitable method of paying for expensive electrical infrastructure required to power development at the edge of the electricity grid.
He said discussions are focusing on a more progressive way of meeting developer's requests for power when their demands were greater than Western Power's infrastructure plans developed for an area to meet expected natural growth.
"Western Power now operates in a new regulatory regime so it is a complex process to develop a policy which enables developers to open up new land and which meets the funding guidelines required by the regulator," he said.
The new approach involves creating a 'head works' charge with contributions from developers to contribute to the cost of new infrastructure.
"Traditionally a developer wanting power connected to a new land release at the edge of the electricity grid, paid for the electrical infrastructure needed to supply power some of the infrastructure costs were prohibitive for a small developer," he said.
"Western Power was keen to devise a more innovative system and has been working with the Energy Minister and the Economic Regulation Authority to change the codes and regulations governing Western Power to allow for the development of the head works charge to contribute to the connection costs.
"Power supply options have been available for developers wanting to connect at the edge of the grid, the issues that have caused concern were associated with the costs and who pays them.
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