Strong financial performance for Horizon Power

Our 2020/21 Annual Report demonstrates our shared ambition to deliver energy solutions for regional growth and vibrant communities.

• Horizon Power’s Annual Report shows an increase in profitability of over 50 per cent
• $75 million invested in 18 regional energy projects as part of the WA Recovery Plan
• World-first demonstration of powering a regional town on 100 per cent renewable energy showcased in Onslow

State Government-owned utility Horizon Power has recorded a $17 million net profit after tax in 2020/21, representing an increase in profitability of $8.1 million or 52 per cent from the previous financial year.

This strong financial performance was achieved without compromising on its commitment to its regional customers and remote communities. More than $40 million in COVID-19 relief payments and support measures were provided to customers, and a record $1.1 million was invested in regional community partnerships during the past financial year.

In total, Horizon Power operates 34 microgrids and three interconnected networks that are tailored to meet the unique needs of some of the most isolated and remote communities in the world.

Its strategies of seeking innovative customer solutions and leading the energy transition have been applauded by its almost 47,000 customers, who are dispersed across a geographical area of 2.3 million square kilometres.

They gave their electricity provider an overwhelmingly positive thumbs up, returning a 77 per cent rating in the annual customer satisfaction survey, conducted by an external service provider.

Horizon Power’s 2020/21 Annual Report, tabled in both Houses of Parliament recently, provides a comprehensive review of the past financial year, which also marked Horizon Power’s 15th anniversary.

The report, available here, demonstrates that Horizon Power has played an important role in the State Government’s WA Recovery Plan, investing $75 million in 18 regional energy projects.

Despite this increase in capital expenditure and the challenges of delivering projects in remote geographical areas during a pandemic, its workforce achieved a stellar safety performance, notching up a second consecutive year of no lost time injuries or illnesses.

The report includes case studies on several innovative renewable energy projects, notably the Onslow Distributed Energy Management System, which recently resulted in the entire town of Onslow being powered by 100 per cent renewable energy for 80 minutes. The advanced technological expertise required to achieve this has positioned Horizon Power well to roll out distributed energy management systems in other towns, as it works towards its target of zero new diesel by 2025 and 100 per cent of its systems incorporating grid-based renewables by 2030.

Examples of key projects and initiatives

Completed a world-first demonstration, successfully powering the Onslow microgrid with 100% renewable energy.	We recorded a 77% rating in our annual customer satisfaction survey.	More than $40 million provided to our customers in COVID-related relief payments and support measures.
We awarded $1.1 million to organisations across WA through our Community Partnership program.	Incorporate Boundary Power, a joint venture with Ampcontrol, to design, build, operate and commercialise Standalone Power Systems (SPS).	We opened our newly developed full-service Customer Experience Centre, Nila Janyba, in Broome.

 

Another ground-breaking project showcased is the Denham Hydrogen Demonstration Plant, Australia’s first green hydrogen trial on a remote micro grid. The plant is under construction and due to be commissioned in early 2022.

Other exciting projects featured in the report that are taking customers into the energy future include the Esperance Power Project, the Solar Schools Program, the opening of Horizon Power’s first Customer Experience Centre in Broome and the Derby Solar Projects.

In addition, a total of $1.1 million in funding for community partnerships was awarded to 116 applicants across regional Western Australia, up from $266,000 the previous financial year. Assessments are based on community need and the funding ranges from $1,000 to $50,000 per proposal.

Chief Executive Officer Stephanie Unwin said she was pleased with the enterprise’s strong performance during the reporting period.

“Amid the unprecedented changes occurring in our industry, I am proud to say that our results this year clearly demonstrate that we are well-equipped to overcome challenges as they arise, as well as take full advantage of the opportunities ahead,” Ms Unwin said. “Overall, the strong financial performance is a result of lower electricity purchases, lower finance costs and slightly higher government subsidies, together with fiscal discipline in managing our costs.”

Horizon Power Chair Samantha Tough said Horizon Power was uniquely positioned to positively influence the lives of its customers and communities and play a pivotal role in shaping the energy future of Western Australia.

“It’s hard to believe that anyone could have envisioned all that a group of people could accomplish by committing themselves to living and working in remote communities and working together with a shared passion,” Ms Tough said.

 

Highlights from the Annual Report include:

• Contracts of $2.2 million awarded through the Aboriginal Procurement Policy
• Joint venture with Ampcontrol executed to design, build, operate and commercialise Standalone Power Systems
• Revenue of $539 million achieved
• Community engagement drives a new renewable energy generation solution for Exmouth
• A Social Impact Index launched to measure the impact of Horizon Power’s actions on communities
• First Service Area Heritage agreement executed with Esperance Tjaltjraak Native Title Aboriginal Corporation.