Final stage of electricity reform underway

Published 10th December, 2013 in Infrastructure, Economy

NSW Treasurer Mike Baird called for Expressions of Interest as the sale process for Delta Electricity’s Central Coast power stations, Vales Point and Colongra, gets underway.

power station
Electricity Reform

Mr Baird said Vales Point and Colongra together had a generating capacity of 1,987 MW, making Delta Electricity the 10th largest participant in the National Electricity Market.

“These are both high quality and important assets in the national market, offering base load and peaking generation capacity,” said Mr Baird.

Vales Point has a baseload capacity of 1,320 MW, representing 8.3 per cent of  the State’s generating capacity. It is a coal-fired power station located at the southern end of Lake Macquarie.

Colongra is a gas-fired power station with a generating capacity of 667 MW. Located close to Lake Munmorah, the plant is newly built and operates as a peaking generator.

Vales Point has long-term coal contracts in place while Colongra has firm gas transmission rights to meet demand.

Mr Baird said suitably qualified parties would be invited to submit indicative bids for Delta Electricity in the first quarter of 2014.

“These asset sales are critically important in allowing the State to invest in much-needed infrastructure right around NSW,” said Mr Baird.

“The State has already successfully transferred a number of assets to the private sector, including Sydney Water’s desalination plant, Port Botany and Port Kembla, Delta Electricity’s western power stations and Eraring Energy.

“The sale and lease of these assets has generated billions of dollars for projects such as WestConnex, the Bridges for the Bush and upgrades to the Pacific and Princes highways, and cleared hundreds of millions in state liabilities.”

Parties interested in receiving a copy of the Government’s Expressions of Interest document should contact the Government’s financial adviser at nswgeneration@gs.com

Responses are due by 10am (AEDT) on Tuesday, 4 February 2014.

Published 10th December, 2013 in Infrastructure, Economy