The project, which includes an open-cycle gas-fired power station and a 30 kilometre gas pipeline, will provide an additional 330 megawatts of electricity to meet growing peak demand on the South West Interconnected System.

Mr Collier said “The plant will address two key challenges facing the state’s energy industry, those being, to meet increasing demand for energy, especially at peak periods, and to help reinforce the electricity network in the northern metropolitan area.”

Power station proponent ERM Managing Director Phil St Baker said that Neerabup would supply approximately 6 per cent of Western Australia’s total electricity capacity requirements.

Mr Collier said that the power station would help meet the State Government’s aim of providing secure, reliable, competitive and clean energy. These objectives will be outlined in the Strategic Energy Initiative, which is currently being developed to provide a clear direction for Western Australia’s energy sector.

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In a move to ensure that Western Australia is better equipped to handle future gas shortages, the Western Australian Government has also announced its plans to implement recommendations outlined in the joint government and industry Gas Supply and Emergency Management Committee (GSEMC) report, based on a review of the state’s preparedness for gas supply disruptions.

Mr Collier called for the review after two gas supply disruptions in 2008, which highlighted major deficiencies in Western Australia’s ability to respond to such incidents.

Key recommendations from the GSEMC report include the implementation of:

  • Strategic and operational plans endorsed by the committee to respond to gas supply disruptions

  • Regulatory frameworks to assist in the development of gas contingency services in the electricity and gas markets

  • A range of gas market arrangements to improve the security, reliability and competitiveness of the domestic gas supply market in Western Australia.