Developers are currently looking into constructing a base-load power station located in North Queensland which will be able to deliver low-cost energy while also creating employment opportunities within the area. It sounds so good on paper that Prime Minister Abbott is willing to support the project, which could possibly be funded by cost-effective government loans.
The Prime Minister has called for business leaders within the North to draw up a plan for the power station, which will be funded by the $5 billion loan facility the government has set aside for northern Australia.
Power station to be funded by government loan
Abbott has stated to the Bulletin, located in Townsville, that his government was fully supportive of the power station project and are looking forward to the proposals coming through, as building a base-load power station within the North will aid in reducing the costs of power towards commercial clients. Currently, these clients are forced to pay almost 30% more when compared to their counterparts located in the south of the country.
Power is supplied by Callide, near Gladstone, which is not very effective as almost 30% of it is lost during the process which creates astronomical transmission costs at the end of the day.
“If there were to be a major new power station in North Queensland, if there were to be a more effective distribution network in North Queensland, that would be obviously a very important economic breakthrough, because power is one of the basic costs of doing business and basic costs of life. It’s very significant,” stated the Prime Minister.
Power station to improve supply and distrubution in North Queensland
Practicability research was conducted within the area during 2014, which indicated that constructing such a base-load power station within the Galilee Basin (which is located near a coal mine) was the best option as it may bring forth almost $716.8 million per annum, contributing a huge sum to the overall economy of the North.
As its stands there are meetings already being held by many of the business leaders within the region, though nothing concrete has been decided upon just yet. “Base-load power is a key project for our region and also for Northern Australia,” maintains Patricia O’Callaghan, Townsville Enterprise CEO.
Economist, Colin Dwyer has claimed that the Stuart State Development Area is the perfect location for the power station, as it has the ability to create many employment opportunities on the while.
Stuart State Development Area is the perfect project location says Dwyer
Dwyer has been quoted as saying that the government must support this project as it was already contributing close to $700 million per annum in order to subsidise electricity for those living in the North.
He adds that the government itself will receive royalties as well as a bonus with these royalties due to the various mining projects which would become operable with the power station development. They would be silly not to back this project fully.
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