The shortlisted bidders are Griffin Energy, Wambo Power Ventures and Collie Power Consortium, a joint venture between Wesfarmers Energy and the Japanese-owned J-Power.
Wambo Power Ventures is a JV between Babcock & Brown and ERM Power Pty Ltd.
Knocked out of the race were Singapore’s SembCorp Utilities Pty Ltd and a Transfield/ABN Amro partnership.
Both Griffin and Collie Power want to build a coal-fired power station near Collie. But Wambo Power Ventures has said it would use gas and would most likely build in the Kwinana area in southern metropolitan Perth.
The field of bidders to build the 300-to-330 megawatt power station has narrowed from the seven initially announced in June.
Five groups then lodged indicative bids for 11 different options in August which included both coal-fired and gas-fired plants.
The three short-listed bidders will have until June next year to negotiate final form contracts, obtain environmental approvals and submit firm bids. The preferred bidder will be announced by September next year.
Western Power managing director Tony Iannello said Western Power was confident the process would result in the best deal.
“The bidders are keen to be involved in the process and to compete for the green light to build the plant and achieve a long term power purchase arrangement with Western Power,” Iannello said.
The coal and gas lobbies are both strong in Western Australia and there has been intense debate over whether the new power station should be coal or gas-fired.
“Importantly, the bidders represent different fuel types ensuring that competition remains strong between the competing fuel sources,” Ianello said.
“Western Power will examine final bids closely before selecting a preferred bidder and consolidating a power purchase arrangement.”
Western Power will buy electricity from the new baseload power station for up to 25 years for distribution to almost 880,000 customers around the South West Interconnected System, which runs from Kalbarri, north of Geraldton, to Kalgoorlie and Albany.
Variations to the power purchase arrangements can be made according to changes in the market conditions, Western Power said.
