Wind farm tender declared

St George & Sutherland Shire Leader
Tuesday 20/5/2008 Page: 20

THE Kurnell desalination plant will be powered by 63 turbines on a new wind farm being established at Bungendore near Queanbeyan. The State Opposition said the wind farm would become "a second white elephant," which would cost Sydney Water customers at least $9.67 million a year even when the desalination plant was idle. Premier Morris Iemma announced this week that Babcock and Brown Wind Partners and Babcock and Brown Power had been selected by Sydney Water as preferred tenderer.

Sydney Water chief executive Kerry Schott said 20-year contracts would provide for electricity to be purchased at a firm price, adjusted annually by the CPI. Dr Schott said the wind farm would continue to operate when the desalination plant was in stand-by mode. "During these periods, Babcock and Brown will sell the power to other customers," she said. "To ensure a new wind farm is built for the desalination plant, Sydney Water has committed to buying a minimum of 180,000 renewable energy certificates (RECs) a year.

"Sydney Water will buy extra RECs whenever the plant is operating to match the plants total energy use. Negotiations are proceeding with contracts expected to be signed soon." Opposition spokesman Chris Hartcher said that based on an average of $40 per REC which was expected to rise to $65-$75, and allowing for CPI increases, the wind farm would cost a further $9.67 million per year while the plant was idle. Mr Hartcher said the claim that the wind farm would increase wind power in NSW by 700 per cent showed how little had been done to increase renewable energy.