Hon Mark McGowan BA LLB MLA

Hon Mark McGowan BA LLB MLA

Premier; Minister for Public Sector Management; State Development, Jobs and Trade; Federal-State Relations

Hon Bill Johnston MLA

Hon Bill Johnston MLA

Minister for Mines and Petroleum; Energy; Industrial Relations

    Muja Power Station in Collie to be scaled back from 2022

    5/08/2019 4:05 PM
     
    • ​Staged retirement of Muja Power Station's two C units from October 1, 2022
    • The Muja C units are WA's oldest power generators and demand for the two C units has declined dramatically
    • Keeping Muja C open is estimated to cost WA taxpayers at least an additional $350 million
    • Keeping the two Muja C units open will lead to higher power bills and put stable energy supply at risk
    • The two Muja D units, Collie Power Station and Bluewaters will continue to operate
    • Synergy providing support for impacted workers, including options for redeployment and reskilling
    • McGowan Government establishes Collie-based Industry Attraction Team, in addition to the $60 million Industry Attraction and Development Fund and $20 million Collie Futures Fund to drive economic opportunities and jobs in Collie

    The McGowan Government has announced two of four operating units at Synergy's Muja Power Station will be retired from October 2022, to protect against higher power bills for households and ensure the State's electricity supply remains stable.

     

    To keep the two units operating at Muja C beyond these dates would cost Western Australian taxpayers in excess of an additional $350 million. That is at least $350 million added to the State's power bill, and a cost borne by every taxpayer in WA. It is no longer viable to keep the units operating.

     

    The two Muja D units, Collie Power Station and Bluewaters will continue to operate. The retirement of Muja C will ensure Muja D units operate more frequently, increasing their stability and long term viability.

     

    Increasing levels of residential rooftop solar power has reduced the demand for traditional coal-fired baseload power generation in the South West Interconnected System.

     

    Synergy's Muja Power Station is the oldest power station in WA, and the generation output for units 5 & 6 within Muja C continues to decline - they are only being used around 35 per cent of the time.

     

    The reduced demand means the 40 year-old units are not being deployed as designed.  Closing the two C units will allow the two D units to work more often, more efficiently and more cost-effectively.

     

    The high operating costs of Muja C, plus increased maintenance requirements due to the additional cycling of the plant, will force power prices up if it remains open.

     

    It is expected around 30 workers will be affected by the closure of the first Muja C Unit 5 on October 1, 2022. The closure of this unit is expected to have minimal impact on coal production.

     

    A further 40-50 workers will be potentially impacted by the Muja C Unit 6 closing on October 1, 2024.

     

    Synergy has engaged a dedicated Workforce Transition Manager to talk to workers one-on-one about their individual needs.

     

    Workforce transition engagements include assessment of skills, redeployment, upskilling, financial planning support, assistance with job search, training programs and preparation for retirement.

     

    The McGowan Government has appointed a specialist coal advisory team to work with all stakeholders to ensure the stability of the Collie basin.

     

    To attract new industries to Collie, the McGowan Government will establish a Collie-based Industry Attraction Team to attract investment, and work with existing industries to encourage expansion and create local jobs.

     

    The McGowan Government has also created a $60 million Industry Attraction and Development Fund, for large-scale initiatives that will promote economic diversity and jobs in Collie, as well as the $20 million Collie Futures Fund, which is already providing new investment and new jobs in the Collie region.

     

    The McGowan Government is absolutely committed to the future of Collie. More announcements to support Collie's economy and create new jobs will be made soon.

     

    Comments attributed to Premier Mark McGowan:

     

    "It no longer makes sense to keep the Muja C units operational. They are expensive to run, and demand for electricity from the units is declining dramatically.

     

    "Keeping them open will lead to higher power bills for Western Australians and put our stable electricity supply at risk.

     

    "However, we also understand that this is a significant issue for workers and the Collie community, and they deserve our support and certainty going forward. We will be working closely with Synergy to ensure all workers impacted by the closure will be supported and options are available, depending on their individual needs and future plans.

     

    "My Government is working hard to create a prosperous future for Collie to diversify the economy and provide new industries for the town, going forward. 

     

    "We are absolutely committed to Collie's future having already announced a series of projects to diversify the local economy and create new long-term jobs for local workers. More announcements will be made soon."

     

    Comments attributed to Energy Minister Bill Johnston:

     

    "It is well-recognised a major transformation is underway in the Western Australian energy sector, as the take up of renewable energy and storage technologies increases.

     

    "As a Government, we need to carefully manage this change to keep energy prices down and deliver reliable electricity to Western Australians.

     

    "Synergy will continue to require coal from Collie, and electricity will continue to be generated from Collie coal for many years to come."

     

    Premier's office - 6552 5000

    Energy Minister's office - 6552 6700