Queensland energy supplier Ergon Energy has announced it has entered into a Power Purchase Agreement with APA Diamantina Power station to supply energy to North-Western Queensland customers.


The announcement follows a commercial decision in October 2011 by Xstrata Mount Isa Mines for a contract with the Diamantina Power Station consortium. 


“The power station will commence operation late 2013 and reach full capacity early in 2014 providing 242 MW of electricity supply in the North West,” State Minister for Energy and Water Utilities Stephen Robertson.


Mr Robertson said the State Government initiated a competitive process in August 2009 to determine the best long-term energy supply option for Mount Isa and the North-West. 

“Ergon Energy had been looking at longer term options for the future electricity supply of the region because the existing Mica Creek Power Station would unlikely be able to continue to supply existing customers,” Mr Robertson said. 

“These options, including the prospects for a transmission based future supply, included the APA Diamantina Power Station project and the proposed CopperString project.”