Power project back on track and budget

Hedland's short term electricity needs are set to be met by the installation of four new turbines at the troubled Hedland Precinct Power Project by October.

The Hedland station, being built at the Boodarie Industrial Estate in South Hedland, had been expected to begin producing power in April until it struck trouble in February when major contractor Forge Group collapsed.

However, Horizon Power said the project was now back on track after it negotiated a deal with APR Energy to install the new turbines and supply power to the Pilbara.

Horizon Power managing director Frank Tudor said the deal meant the Power Project would be completed on budget, despite the troubles with Forge.

"Horizon Power has ensured the reliability and security of supplies to the Pilbara," he said.

The Hedland station is expected to provide an additional 60 megawatts of electricity to residential and industrial customers in the Pilbara, which is equivalent to approximately half the current electricity usage of Karratha, Hedland, Point Samson and Roebourne.

However, the station is only a stop-gap measure until the expected 2017 opening of Canadian company TransAlta's larger Pilbara power station.

The State Government funded the temporary power station in 2013 to meet unexpectedly high electricity demands in Hedland caused by the resources boom.

Currently, Hedland gets all its power from outside sources.

However, once TransAlta's proposed Pilbara power station is built in South Hedland, it will generate 150 megawatts of power.

Horizon Power and Fortescue Metals Group have already signed on as customers.