30/04/08 – IPRA HERONS CREEK POWER PROPOSAL

International Power Australia’s plans for a small peaking power plant at Herons Creek, approximately 24km south west of Port Macquarie on the mid north coast of New South Wales, will go on public display from today.

The $110 million proposal will produce up to 150MW of power and is a direct response to increased electricity demand in the region and, in particular, the need for greater generation capacity during peak periods such as during the height of summer and winter.

The facility proposed by International Power Australia (IPRA) would operate on an asrequired basis for an anticipated maximum period of up to 10 per cent of any year to provide:

- Support to the National Electricity Market at times of high demand and/or constraints;
- Transmission network support to ensure reliability and quality of electricity supply;
- Security of local electricity supply at times of system (planned or accidental) shut down

The proposal is on public exhibition at the Greater Port Macquarie Visitor Information Centre, Kew, and the Port Macquarie-Hastings Council Library, Port Macquarie. Public information sessions will be held at Kew on Wednesday 14 May 2008 from 9am to 3pm and at Port Macquarie on Thursday 15 May 2008 from 9.30am to 3.30pm. Submissions on the proposal are invited during the consultation period.

IPRA lodged the proposal with the New South Wales Department of Planning in December 2006 and has been undertaking a comprehensive environmental assessment report as part of the approval process.

The facility would comprise, subject to final plant selection, three separate 40MW to 50MW generating units, able to operate individually or in conjunction, to provide a high level of reliable generation capacity within the region. As the nearest source of natural gas is 200km away at Newcastle, the power station would use distillate-fired gas turbine generators capable of later conversion to gas-firing in the event that commercially viable natural gas supplies become available in the future.

IPRA Group Manager, Corporate Affairs Mr Jim Kouts said the company had submitted its draft environmental assessment report to the Department and the next stage is a four-week public exhibition phase, during which submissions from members of the public and other government agencies would be received.

He said the project would deliver electricity with acceptable environmental outcomes. It is proposed that water used in the power plant operation would be sourced from recycled site stormwater and, where practical, treated effluent from the Herons Creek Sewage Treatment Plant.

“The proposed location has been selected on the basis it has the least overall environmental and community impacts in solving regional power supply problems,” said Mr Kouts.

“The plant is located next to the Pacific Highway with the nearest residence approximately 300m to the north and the small township of Herons Creek about 2.2km north of the site.”

Mr Kouts said the Environmental Assessment Report had found that the gas turbine exhaust stacks, which would be up to 20 metres high, would have a low visibility due to the existing terrain and planned landscaping and the plant would comply with all air emission and noise regulations.

He said the plant, if approved, would take approximately six months to complete. As with all major projects, International Power’s investment would be subject to normal commercial review and International Power Board approval.

IPRA is a wholly owned subsidiary of International Power plc, a UK-based independent power generation and operation company. International Power Plc has interests in 40 power stations in 20 countries around the world, is listed on the London Stock Exchange and has a current market capitalisation in excess of A$16.3 billion. Since becoming established in Australia in 1996, IPRA has invested in excess of A$5 billion and focused on becoming a leading player in the energy industry. The company owns and operates more than 3600MW of renewable, gas-fired and brown coal fired generating plants in Victoria, South Australia and Western Australia. Its also has an energy retailing operation in Victoria and South Australia called Simply Energy. More information is available on www.ipplc.com.au