The Australian and Western Australian governments have signed a $3 billion Rewiring the Nation deal to provide cheap and secure renewable energy for Western Australia’s growth.
The Commonwealth-Western Australia Rewiring the Nation agreement would improve WA’s energy security by expanding and modernising electricity grids in Perth, the South West, and the North West Pilbara.
“Today we are joining forces with the Cook Government on a $3 billion landmark deal to deliver affordable cleaner energy to Western Australians,” Prime Minister Anthony Albanese said.
“Rewiring the Nation will help future proof WA’s energy supply, while also creating new jobs in energy, mining, and manufacturing,” Prime Minister Albanese stated.
Under the agreement, the Federal Government will allocate up to $3 billion through concessional loans and equity investments to the State through the Clean Energy Finance Corporation (CEFC) for new transmission upgrades in the South West Interconnected System (SWIS) and the North West Interconnected System.
“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,” WA Premier Roger Cook said.
Priority projects in these grids were selected through WA’s demand assessment processes, with recent Australian Energy Market Operator (AEMO) modelling supporting the need for continuous investment in SWIS transmission infrastructure.
According to the State Government, an investment of this magnitude is estimated to support about 1,800 construction jobs and unlock future projects across WA, thereby empowering regional communities.
The SWIS is WA’s electricity network, serving over 1.1 million residential and business customers in Perth and the South West. It begins in Kalbarri in the north, passes through Perth, south through Albany, and east to Kalgoorlie.
This agreement will fund key projects across the SWIS to improve renewable energy supply and connect it to the grid by plugging in renewable generation hubs.
Preliminary modelling showed the SWIS grid would require up to five times more electricity than is now available in 20 years as additional industrial users connect to the grid.
Investing in new energy grid projects will guarantee that the SWIS stays fit for purpose and that West Australians will have cleaner, cheaper, and more reliable electricity in the future.
The Pilbara’s NWIS comprises standalone networks controlled by private corporations and state agencies, with renewables accounting for a minor fraction (less than 2%).
This agreement will encourage the use of more renewable energy in the NWIS while ensuring that existing infrastructure upgrades are coordinated across industry and governments.
The Rewiring the Nation agreement builds on the momentum of the Pilbara Industry Roundtable, a major WA Government-led project that includes some of the State’s biggest resource companies.
“The agreement has been informed by WA Government modelling, specifically from the South West Interconnected System Demand Assessment and the Pilbara Industry Roundtable process, and I thank private industry for their commitment to undertake a crucial role in decarbonisation,” WA Minister for Energy Bill Johnston said.
“Keeping Western Power in public hands has allowed the State Government to support this significant program of works by funding transmission infrastructure in the SWIS – where we have already funded $126 million in the recent Budget to kickstart early network planning,” Minister Johnston added.
Implementing renewable energy sources will accelerate economic development and decarbonisation by promoting efficient sharing among various users.
Federal Climate Change and Energy Minister Chris Bowen said the announcement is about bringing cheaper, more reliable energy to the State and preparing for WA for the future.
“The Australian and West Australian Governments are enabling WA to capitalise on the renewable energy transformation and make the most of the incredible jobs opportunity that comes with it,” Minister Bowen added.
