A $575 million investment in WA’s major electricity grid is designed to facilitate energy opportunities in a state “up to its guts” in the energy transition, according to Premier Roger Cook.
A $575 million investment in WA’s major electricity grid is designed to facilitate energy opportunities in a state “up to its guts” in the energy transition, according to Premier Roger Cook.
The major South West Interconnected System investment was the keynote announcement among a range of initiatives unveiled at the state’s Energy Transition Summit, and designed to connect the grid to the energy opportunities in the state’s Mid West.
It will incorporate a new transmission line between Malaga and Pinjar and see high-capacity power lines installed between Perth and Three Springs, along with infrastructure and upgrades at key industrial areas including Kwinana and Collie.
The investment is a major component of an overall $708 million package, through which a further $133 million will be invested in planning towards new power infrastructure and upgrades at key industrial areas including Kwinana and Collie, and north to Geraldton.
Mr Cook said the investment to connect the opportunities in the Mid West to the SWIS was essential, as the region shaped up to be a renewables powerhouse.
“This is fundamental to harnessing the renewable energy potential of the Mid West, with wind and solar that are the envy of the world,” Mr Cook said.
“The Mid West region has the capacity to propel WA to become a global leader in clean energy solutions, and that’s why our upgrades are focused on unlocking the Mid West potential.
“Our upgrades will allow the South West grid to further tap into the existing wind and power assets, but they also pave the way for new, renewable generation projects currently in the pipeline.”
The SWIS funding was announced alongside a slew of initiatives designed to accommodate a push to renewables across the state and incentivise investment in the state’s major industrial areas - including the Mid West's Oakajee region.
Mr Cook acknowledged the challenges Western Australia faced attracting international renewable investment in a globally competitive landscape in revealing the state would offer lease waivers and rebates for industrial customers in six of the state’s 13 strategic industrial areas.
The scheme will cover the Anketell, Boodarie, Maitland, Mungarie, Oakajee and Shotts strategic industrial areas, and apply to projects with capital costs above $1 billion where a final investment decision by June 30, 2028.
“We are sending a message to companies with global scale clean energy projects to come to Western Australia and be a first mover,” he said.
“Bring your project to anchor into one of our strategic industrial areas and we will offer you a waiver for the first five years of your lease, plus 100 per cent rebate on your option to lease fees.
“This will unburden major projects through the critical construction phase, or while production ramps up in the early stages.”
It comes the day after the state revealed a policy tweak which will allow lands minister John Carey the ability to grant lease options to renewables projects yet to receive Environmental Protection Authority approval, and $134 million of investment split across the state’s investment attraction fund and renewable energy initiatives.
A new organisation – PoweringWA – was also unveiled this morning by energy minister Bill Johnston.
Mr Johnston said the organisation would coordinate the delivery of transmission, renewable generation and storage infrastructure to support the SWIS electricity grid, and sit within the recently renamed Department of Energy, Mines, Industry Regulation and Safety.
Meanwhile, federal climate change and energy minister Chris Bowen announced a joint $19.9 million partnership which will see solar installed at up to 2,000 regional and remote households in Western Australia's Kimberley region.
Classical gas
The conversation around renewables was punctuated on all levels this morning by endorsement of natural gas as a transition fuel for the decarbonisation of the Asian region.
Mr Cook reiterated his recent stance on the state’s responsibility to produce materials and fuel that would assist Asia in achieving its environmental objectives.
He told the audience coal was current enemy in the early decarbonisation battle in Asia, and that the state’s overall objective was to play a part in a global emissions reduction push.
The premier also backed in technologies including carbon capture as key to achieving its goals.
“If we want to get to a clean energy future, we have to accept that gas has a role to play in that,” he said.
“Let’s do what we can to make sure that we, to the extent that we can, leverage our great technology, and Western Australia’s extraordinary geological advantage, in capturing and storing as much carbon as possible.”
Mr Cook acknowledged parts of the energy transition would be challenging for industry and peoples’ lives. He also recommitted to the challenge of closing the state’s coal-fired power stations by 2030.
Mr Bowen was similarly supportive of the role of gas as a transition fuel, citing it as essential base load for the federal government’s ambitious energy mix target of 82 per cent renewables by 2030.
“Unlike coal-fired power stations, and for that matter, nuclear power stations, gas-fired power stations can be turned on and off at short notice, making them vital for peaking and firming [the energy mix],” he said.
Mr Bowen this morning announced a $70 million investment in BP’s H2Kwinana hydrogen hub as part of the federal regional hydrogen hubs program, and backed green hydrogen as a key part of the long term solution for the decarbonisation of the nation’s energy grid.
Mr Bowen will visit the project this afternoon.
