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27 December 2007 - The Western Australian Government is expected to announce it has underwritten a new A$500m ($437m) coal fired power station at Collie.

A deal is believed to have been signed for state-owned power retailer Synergy Power to buy 200 MW of electricity from The Griffin Group for the south-west grid from 2010.

The contract would allow the A$500m second stage of Griffin's Bluewaters station at Collie to proceed, and would make it more challenging for Synergy to achieve its target of securing 15 per cent of power from renewable sources from 2020.

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