The duel-fuel Kwinana Swift Power Station, operated by Perth Energy, has been opened by Energy Minister Peter Collier.
The 120 megawatt gas-fired power station takes just five minutes to reach full capacity.
Mr Collier said the power station will help support renewable energy generation.
"This will assist with increasing Western Australia's capacity to manage intermittent power on the grid from renewable energy sources, such as wind and solar," he said.
"The station will also increase reliability of supply during high demand periods and add significant security during system emergencies through its capacity to quickly switch fuels from gas to diesel."
Mr Collier said the open-cycle gas turbine power plant would help the grid accommodate more renewable energy generation, assisting the State to achieve its share of the national target of 20 per cent by 2020.
"Meeting this target is a key objective of the Strategic Energy Initiative: 'Energy 2030', which will provide a co-ordinated direction for WA's energy sector while delivering a cleaner energy future," he said.
Perth Energy managing director Ky Cao said: "Today's opening heralds the arrival of an innovativeapproach to new capacity supply in the SWIS; a project that can achieve multiple goals covering
supply security, environment and lower cost choice for consumers."
"Not only will Kwinana Swift give Perth customers more power to choose who they buy their
power from, it will improve reliability of supply and help the grid take up more renewable energy
generation, providing a cleaner future."
"This will help achieve Australia's 20 per cent renewable energy target by 2020," Mr Cao said.