A MULTI-MILLION dollar gas fired power station planned for Big Hill has been given the flick by energy giant Origin because its financial benefits didn’t stack up.
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Despite the Kerrawary plant predicted to save 100,000 tonnes of carbon emission annually while supplying 15,000 homes with electricity, Origin has blamed a poor futuristic energy market and deflating economy for its discontinuation.
At Upper Lachlan Shire Council’s latest meeting Origin made it clear it has no intentions to complete the controversial project by releasing a statement that said: “(Origin is) committed to making prudent capital investment decisions based on a number of factors, including anticipated future demand and associated project costs, while delivering an attractive return of investment”.
“On this basis Origin has decided it will not continue with its investigation of Kerrawary power station,” it concluded.
The gas-fired station, which would have been fed from a Bannaby based transmitter, was pitched as a “peaking station”.
A peaking station is designed to assist during times of high demand, meaning the power plant would not be functioning all the time.
The
Community relations advisor for Origin, Kathy Howard, told the
“Origin Energy has notified local landowners of its decision to suspend further work on its development application for the proposed Kerrawary power station,” Ms Howard said.
“On behalf of the project team I would like to add that we are very appreciative of the support that the community has offered and the way they have worked with us across this period.”
The 1000 megawatt hub was proposed to power at least 15,000 homes, with a total construction circumference of less than 20 hectares, including a buffer zone for limiting visibility and noise.
Origin boasts an annual surplus of $8.5 billion from around 3.5m Australian and New Zealand customers.
