bhp to use half of states electricity, page-14

It is important to recognise the intersection of mating calls being made here, both direct and indirect. Eventhough BHP has discussed its requirements with both the SA government, GDY, and existing suppliers, at some point public justifications needs to be made. At the same time continuous fishing for support w.r.t. the Federal Government is attempted by making it clear that for major development to occur at one point of an Australian desert 700 MW of power is required, while at another desert point 1000 MW of clean base load power can be available within 10 years (500 MW by 2016 already planned). "We only need a power chord to connect them!" The hint is that some provision needs to be made for infrastructure funding, perhaps in tax free loans or incentives such as infrastructure roads received up to 6-7 years ago. The Federal Government for its part needs to be able to show that it is on track to reduce emissions of 20% by 2020. Emission free power stations such as GDY's could provide large slabs of political achievement for the Government.

Some additional delicate questions occur of how independent the Government can remain when PTR, GRK, EDE, PHY, and GDY are all jockeying for the same BHP contract. If the Government owned the transmission lines it would immediately level the field somewhat for HFR companies. What mechanisms are available to the Government?

Juke