Epuron Wind Farm Proposal

Dr JOHN KAYE: I direct my question to the Minister for Primary Industries, Minister for Energy, Minister for Mineral Resources, and Minister for State Development. On 8 October 2007 did the Minister say on ABC radio, in respect of the Epuron proposal for a 1,000 megawatt installed capacity wind farm at Silverton, in Western New South Wales:

Despite the optimistic note in the release of this proposal, it is assessed by our experts that New South Wales is not a high wind state.

On what data or research did the Minister base that claim? Will the Minister release or make public that research? What evidence does the Minister have to prove that the $2 billion investment of Epuron's own money is a false investment? Further, why has the Minister taken such a negative attitude to a proposal that promises to bring jobs, economic prosperity and clean energy to western New South Wales?

The Hon. IAN MACDONALD: This is a classic example of a few comments being taken out of context—the Greens do this time and time again—and it has been done probably as a result of a statement by Tim Flannery on the television program Lateline that I was opposed to the project. Let me make it very clear that I am not opposed to the project and I did not oppose the project in the interview conducted with me on ABC television at Randwick on that day.

The New South Wales legislation provides for renewable energy targets, and projects that achieve those targets can be sourced from any locations in Australia that are linked with the grid. Accordingly, projects in South Australia, Tasmania, Victoria and Queensland can qualify for our scheme. Prior to my assuming the role of Minister for Energy, technical advice was provided to the Department of Energy that New South Wales was behind the other States in being able to efficiently produce wind energy to the market and that we should therefore source projects to meet the targets from other parts of Australia. The argument was not about whether this project was viable; it was about our legislation and the ability of external providers to meet those targets. That is what the discussion was about. It was not about whether or not I opposed this project.

I did say that there would be a number of difficulties with such a project. Any project of such a large size way out in the Mundi Mundi Plains at Silverton near Broken Hill would have to meet the difficulties of transmitting power to major areas and into the grid. The costs would be lower if it were a localised project that serviced Broken Hill, but it is not a locale-based project. Power has to be put into the grid and sent elsewhere, perhaps to Adelaide or Sydney. If the project is located way out in the Mundi Mundi Plains, that would involve huge transmission costs. I have been several times to the Mundi Mundi Plains, which are magnificent. The area may have large generation capacity and reasonable wind efficiency ratings, but I am not sure. The project is open for evaluation. I do not oppose the project, but I did raise the issue that the long distance to send the power to the grid could involve considerable transmission costs. That is what I said and I do not resile from that.

The New South Wales Government is encouraging wind power in a number of areas. We have a wind power station at Lake Carcoar and are looking at a number of other proposals. We do not oppose wind power, but to effectively and efficiently use wind power we will not discount projects in the southern part of the continent in areas of high wind velocity, whose power comes here on a national grid. That includes wind power stations that use the roaring forties wind on the west coast and winds in most parts of Tasmania, Victoria and South Australia. That is our position, no more or less. We do not oppose wind power, and we do not oppose this project.

Dr JOHN KAYE: I ask a supplementary question. Will the Minister table advice on the transmission distribution costs associated with the Epuron project? Will the Minister table advice on wind velocity and wind resource quality in relation to the Epuron project at Silverton?

The Hon. IAN MACDONALD: Again Dr John Kaye has missed the point. I do not rule out this particular project. I have pointed out that large transmission costs may be involved. By the way, I am meeting with Epuron.

Dr John Kaye: That would be a first.

The Hon. IAN MACDONALD: It is not a first. I have met with solar energy companies. I do not have a difficulty with such projects. I pointed out that this 1,000 megawatt proposal based out at Broken Hill may have large transmission costs in distributing the power. Environmental factors would be dealt with in a development approval. The situation is that New South Wales legislation is based on scientific assessments of wind resources in this State.