The McGowan Government released a major assessment of the future of Western Australia’s (WA) primary electrical grid and pledged $126 million to start early network planning.
The South West Interconnected System (SWIS) Demand Assessment considered existing industrial users on the SWIS and potential growth in new industries like hydrogen and critical minerals to estimate electricity demand over the next 20 years.
As industry and Government strive for net zero emissions by 2050, the WA Government said SWIS renewable energy demand will significantly increase.
“The SWIS Demand Assessment provides a vision of what the future grid might look like as industry seeks to decarbonise.,” Energy Minister Bill Johnston said.
The initial analysis predicts an extra 7.2GW of new industry energy consumption in the SWIS by 2042, which might necessitate up to 51.1GW of new production and storage capacity. This is over ten times the amount of generating capacity now available on the SWIS.
According to the State Government, the SWIS Demand Assessment supplements the 2020 Whole of System Plan by examining anticipated growth in energy demand, which is mostly driven by industry’s climate change activity.
“This modelling builds on the 2020 Whole of System Plan, recognising the urgency of action on climate change and the accelerated decarbonisation plans for the State’s major industries,” Minister Johnston stated.
Transmission infrastructure investment is critical, with modelling showing that more than 4000km of the additional network may be needed to connect industrial users with new renewable energy projects and release limited sections of the SWIS.
“Transmission infrastructure is a critical enabler of our energy transition, being essential for connecting users with renewable energy resources,” Minister Johnston added.
The McGowan Government’s 2023–24 State Budget would fund $126 million for Western Power to begin planning works in the SWIS’s northern, central, southern, and eastern corridors, representing the biggest expected growth areas.
The funding will help with planning and long-lead item purchases for the first north network renovations, which are projected to surge due to new energy projects, and east network upgrades.
The State Government said WA’s domestic gas reservation policy and public ownership of the SWIS enable a low-carbon future without the price spikes and volatility witnessed in other Australian states.
Industrial users will decide on State-owned network investment with the State Government. This activity aims to prevent residential energy users from paying for industry green energy network infrastructure.
After the SWIS Demand Assessment, communication with existing and potential industrial users will define a network investment strategy, including industry contributions and third-party investments.
“The McGowan Government is getting started with grid infrastructure planning and development, and is reviewing a range of regulatory processes to ensure they are fit-for-purpose,” Minister Johnston said.
