Verve Drops Warradarge Windfarm Development in Australia Amid Uncertain Reneawable Energy Future

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Researched by Industrial Info Resources Australia (Perth, Australia)--Verve Energy Limited (Perth, Western Australia), Western Australia's major electricity provider, announced the dismissal of future development related to the Warradarge windfarm project, citing current market conditions and the flux surrounding the renewable energy market in Australia. Verve Energy disbanded the Warradarge project team and may switch employees to other parts of the businesses. Sources also say that as many as 15 employees working with the renewable energy development team could be laid off.

A spokesman for Verve Energy says the project will be put on hold until there is enough demand for what would be the state's largest windfarm. The 250-megawatt (MW) Warradarge project would be located in Warradarge, south of Eneabba, and is expected to cost $600 million.

Verve Energy's decision has disappointed local residents and the Conservation Council of Western Australia, which expressed disappointment, saying it contradicted public appetite for renewable energy. "We have a recipe for significant community backlash against the climate and energy policies and actions of the Western Australian government," spokesman Cameron Poustie said.

Verve Energy, in a joint venture with Infrastructure Capital Group (ICG) (Sydney, Australia), recently opened the 55-MW Mumbida windfarm, which is located approximately 40 kilometers southeast of Geraldton. The $200 million windfarm project was built with 22 General Electric (NYSE:GE) (Fairfield, Connecticut) 2.5xl wind turbines. It employed up to 100 people during its construction and now has six employed for operations.

On a similar note, Horizon Power Limited (Karratha, Australia) recently announced that it will make up to 240 employees redundant by June 2014, as part of a major overhaul of its business. This decision was followed by the delivery of a significant program of works to the value of $1 billion over the past seven years. Horizon Power plans to cut 130 jobs by December this year, which predominantly will be from the local Bentley office in Perth.

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