The federal government has committed $3 billion in funding to private sector electricity transmission projects in Western Australia to support the roll-out of renewable energy programs.
The concessional loans and equity investments are being earmarked from the government’s $20 billion Rewiring the Nation fund, being administered by the Clean Energy Finance Corporation.
It will be available to new builds and major upgrades to transmission connected to the either of the state’s main grids, the South West Interconnected System (SWIS) and the North West Interconnected System.
Victoria and Tasmania were the first to benefit from the Rewiring the Nation initiative, receiving commitments of around $7 billion last October.
Some priority projects have been identified through the state government’s SWIS demand assessment, released in May, and the Pilbara Industry Roundtable consultation process. The state budget 2023-24 committed $126 million to state-owned SWIS operator Western Power to support delivery of network investments identified in the assessment.
According to the SWIS demand assessment’s ‘Future Ready’ modelling scenario, the state’s main grid peak demand could more than triple by 2042, requiring more than 10 times the current generation and storage capacity and more than 4,000km of new transmission lines to distribute new energy projects, including from renewables.
The NWIS, located in the Pilbara, is mainly comprised of several standalone networks with just two per cent of electricity generated from renewables.
In the state’s 2023-24 budget, $2.8 billion was committed to new energy storage, wind generation, and transmission network upgrades along the SWIS. The bulk of this, $2.3 billion, has been earmarked for battery storage projects, while $368 million will support up to 210MW of renewable energy projects.
The state government wants to reduce its greenhouse gas emission by 80 per cent on 2020 levels by 2030.
Prime Minister Anthony Albanese said that the Rewiring the Nation fund would help “future proof the state’s energy supply” and create new jobs in energy, mining, and manufacturing.
“On the weekend I visited Karratha and saw firsthand the economic power of the Pilbara – as the global economy decarbonises we need to provide opportunities for regions like the Pilbara to be powered by as much renewable energy as possible,” the Prime Minister said.
Western Australian Premier Roger Cook said his government is delivering on its “sensible and achievable plan to decarbonise our existing industries and create new clean energy industries”.
“This significant package means we can accelerate the development of key energy transmission projects to facilitate decarbonisation, while also building on my Government’s climate action plan and initiatives already underway towards more secure, cleaner, reliable and affordable energy supplies,” Premier Cook said.
“I thank the Commonwealth Government for its confidence in WA and the way in which they have approached negotiations for a Rewiring the Nation allocation for WA, and I want to acknowledge the efforts of WA Energy Minister Bill Johnston for spearheading the concept and undertaking consultation to garner the support and commitment of key industry players in WA.”
