Delta Electricity
Total Page:16
File Type:pdf, Size:1020Kb
contact details Corporate office Level 12 Darling Park 201 Sussex Street Sydney NSW 2000 Telephone 02 9285 2700 Facsimile 02 9285 2777 Office Hours 8.30am – 5.00pm Mt Piper power station 350 Boulder Road Portland NSW 2847 Telephone 02 6354 8111 Facsimile 02 6354 8112 Office Hours 7.45am – 4.00pm Munmorah power station Scenic Drive Doyalson NSW 2262 Telephone 02 4390 1611 Facsimile 02 4390 1642 Office Hours 7.45am – 4.00pm Vales Point power station Vales Road 08annual report Mannering Park NSW 2259 ’ Telephone 02 4352 6111 Facsimile 02 4352 6007 Office Hours 7.45am – 4.00pm Delta Electricity Wallerawang power station 1 Main Street DELTA Wallerawang NSW 2845 Telephone 02 6352 8611 E Facsimile 02 6352 8847 LECTRICITY Office Hours 7.45am – 4.00pm Delta Maintenance Munmorah Power Station Scenic Drive A Doyalson NSW 2262 NN Telephone 02 4390 1606 UA Facsimile 02 4390 1642 L RE Office Hours 7.45am – 4.00pm port Website http://www.de.com.au 2008 Community information line 1800 115 277 ISSN 1327-6557 Front Cover: Sugar cane growing The Hon. Eric Roozendaal, MLC in the sub-tropical north coast of Treasurer New South Wales. Sugar cane is Level 36 Governor Macquarie Tower considered to be carbon dioxide 1 Farrer Place Sydney NSW 2000 neutral, meaning CO emissions 2 The Hon. Joseph Tripodi, MP from the crop and those produced Minister for Finance, Minister for Infrastructure, during milling and energy generation Minister for Regulatory Reform, and Minister operations are balanced by CO 2 for Ports and Waterways accumulation by the crop. Level 31 Governor Macquarie Tower In a partnership between Delta 1 Farrer Place Sydney NSW 2000 ’08annual report Electricity and the NSW Sugar Delta Electricity Milling Co-Operative Limited cogeneration units which use green sugar cane waste (bagasse) as fuel have been built at Condong dear and Broadwater sugar mills. index Cogeneration is the combined shareholders, production of power and heat. It is with pleasure that the Board of Delta Electricity a The steam produced drives two submits its Annual Report for the period of Apprentices 12 processes – low pressure steam 1 July 2007 to 30 June 2008 as required under Auditor-General’s Opinion 55, 72 is used for heating in the sugar the Annual Reports (Statutory Bodies) Act 1984. mill while high pressure steam b drives the turbine generators to The Annual Report covers the activities of Delta Board Committees 16 produce electricity and to run the Electricity for the year and contains the Statement Board Meetings 16 mill engines. All output will be sold of Accounts for the period ended 30 June 2008. Board of Directors 15 as renewable energy under the The Annual Report includes a letter of submission Balance Sheets 22, 56 Australian Government’s mandatory to the Voting Shareholders and was prepared in renewable energy accreditation c accordance with section 24A of the State Owned Chairman’s Report 2 scheme. Corporations Act 1989 and the Annual Reports Chief Executive’s Report 4 Delta Electricity is proud to be (Statutory Bodies) Act 1984. It is being submitted Community engagement 11 managing the largest baseload for presentation to Parliament. Consultants 18 renewable energy project in Yours faithfully, Cost of Reporting 19 Australia. Cash Flow Statements 25, 60 d Diversity 12 e Environment 8 Equal Employment Opportunity 12 PETER YoUng Chairman Ethnic Affairs Statement 14 Executive Committees 16 Executive Management Team 17 contents tables Exemptions 19 Inside front cover 7 Table one: Key Performance f Letter to Voting Shareholders Indicators – Statistical Summary Financial Statements 23-72 1 Highlights 9 Table two: Freedom of Information 20 2 Chairman’s Report Environmental incidents JIM HEnnEss Chief Executive 4 Chief Executive’s Report 11 Table three: New developments g 6 Profile 14 Table four: Trends in the Governance 15-20 8 Review of Operations Representation of EEO Groups 12 People 14 Table five: Trends in the l 15 Governance Distribution of EEO Groups Letter to Shareholders Inside front cover 21 Financial Statements 2008 16 Table six: Directors’ Meetings Locations 7 Inside back cover Index 17 Table seven: Back cover Contact Details Executive Committees m 18 Table eight: Mission 6 Executive Remuneration o Overseas Visits 19 communication objectives p Performance Summary 7 This Annual Report is a financial and compliance report, prepared to meet Profile 6 the requirements prescribed by the Annual Reports (Statutory Bodies) Regulation 2005. It takes into account exemptions granted by the Treasurer r in July 1997. Reporting Objectives Inside front cover Risk Management 14 The 2008 Sustainability Report will be prepared this year against the National Generator Forum standards derived from the Global Reporting s Index. This will be completed by December 2008 and made available on Safety 12 our website www.de.com.au. Statement by Members of the Board 54, 71 v Values 6 Vision 6 Designed and produced by Ross Barr & Associates Pty Limited As a major generator in the National Electricity Market, Delta Electricity has successfully put in place the strategies which will increase capacity, reduce emissions and prepare for the introduction of an emissions trading scheme. financial performance development • Profit before tax of $132.1 million • Began construction at Colongra of low emission gas turbine plant and associated pipeline plant performance • Commenced commissioning of renewable energy plants • Record level of production achieved with at Condong and Broadwater 24,054 GWh sent out • Prepared environmental assessments for NSW gas turbine facilities at Marulan and at Bamarang plant improvements • Completed installation of fabric filters environmental management at Vales Point Power Station • Initiated pilot post combustion carbon capture research • Mt Piper Power Station boiler safety control project with CSIRO systems replaced and a new generator control • Retained ISO 14001 compliance assuring best practice system installed processes in environmental management • Second ash storage silo installed at Wallerawang, reducing noise impacts safety on community • Mt Piper Power Station staff achieved 900 days without a lost time injury • Maintained self insurance licence after meeting requirements of WorkCover safety audit people • Delta apprentice won Central Coast Apprentice of the Year for second consecutive year • New scholarship established for indigenous students at University of Newcastle Ourimbah campus highlights 1 chairman’s Peter Young report The past 12 months have been our business performance characterised by a focus on the NSW As a major generator, Delta Electricity has been implementing strategies to increase Government’s proposal to restructure the capacity, reduce emissions and prepare for the introduction of an emissions trading State’s electricity industry and associated scheme. We have also continued to operate an efficient energy generation business. activity and, equally, a focus on climate We achieved our highest level of production this year with 24,054 gigawatt hours change. In particular, we awaited the (GWh) sent out – sufficient to power three million homes – and we returned a before tax profit of $132.1 million. outcomes of an independent review by Professor Ross Garnaut, commissioned Plant availability was unacceptably low at 77.3%. This reduced our ability to sell on the by Australia’s Commonwealth, State and spot market and consequently this had an impact on our revenues. A comprehensive review of outage occurrences and remedies to improve plant performance has been Territory Governments in April 2007. implemented. The effectiveness of actions to improve availability will be monitored by the Board. It is recognised by the Board that availability needs to improve and The review was set up to examine effecting improvements will remain a high priority. the impacts of climate change on the Australian economy and recommend serving our market medium to long-term policies and policy Delta continues to position itself to meet the challenges of a tightening supply frameworks which will improve the market. We have a number of major projects underway to increase our generation prospects of a sustainable economic capacity enabling us to deliver increased base load and peaking capacity while environment. lowering the emissions intensity of our energy supply chain. The main capacity increase will come from a 667 megawatt (MW) gas turbine facility being built at Colongra near Munmorah Power Station. This $500 million power station will produce about 40% less greenhouse gas emissions per unit of output compared to coal-fired power plants. Colongra will be a power station operating at times of peak demand and is expected to be commissioned in early 2009. In another exciting development, Delta is constructing the largest baseload renewable energy project in Australia. Two 30 MW renewable energy co-generation facilities, one each at Condong and Broadwater sugar mills on the NSW North Coast, will be operating by the end of 2008. The $200 million project which saw extensive refurbishment at the sugar mills, was undertaken in a joint venture with the NSW Sugar Milling Co-Operative. Both plants will predominantly use sugar- cane based materials as fuel to ensure 24 hour a day, seven day a week, year round generation of baseload renewable energy. These projects will ensure the sustainability of our business as we deliver low emission and renewable energy 2 competitively into the National Electricity Market. The next year for Delta will be an exciting one. The need to meet growing energy needs in an ecologically sustainable manner is now beyond dispute. our industry situation We are also supporting research on developing solar-thermal technology. Delta is The Owen Inquiry reported in September 2007 one of nine participants in a study focusing on technology selection, potential site on generation requirements for New South Wales. selection (including sites in NSW), network issues and cost estimates. A major finding was that the forecast rise in energy The widespread community concern for the environment has made power stations consumption in NSW will require considerable a target for activists seeking to draw attention to climate change issues.