$3bn investment in energy transmission to support 1800 construction jobs

The Australian and Western Australian Governments have signed a landmark agreement that will deliver transmission projects to help drive down power prices as well as provide more secure renewable energy. 

The Rewiring the Nation deal will strengthen the State’s energy security through the expansion and modernisation of electricity grids in Perth, the South West, and in the North West Pilbara region. 

The Australian Government is committing up to $3 billion to the State through concessional loads and equity investments through the Clean Energy Finance Corporation (CEFC). This funding will build and deliver major upgrades to transmission across Western Australia’s major electricity grids, including the South West Interconnected System (SWIS) and the North West Interconnected System (NWIS). 

“Today we are joining forces with the Cook Government on a $3 billion landmark deal to deliver affordable cleaner energy to West Australians. 

“Rewiring the Nation will help future proof WA’s energy supply, while also creating new jobs in energy, mining and manufacturing,” Prime Minister Anthony Albanese said. 

Priority projects have been identified through the State’s demand assessment processes. The recent Australian Energy Market Operator modelling also supports the need for sustained investment in transmission infrastructure in the SWIS. 

This significant investment is expected to support approximately 1,800 construction jobs as well as unlock projects across Western Australia, empowering regional communities. 

“In WA we are delivering on our sensible and achievable plan to decarbonise our existing industries, and create new clean energy industries as we transition to net zero, unlocking new projects while supporting new and ongoing local jobs. 

“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. 

“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,” Premier Roger Cook said. 

The SWIS is the State’s main electricity network that serves more than 1.1 million residential and business customers in Perth and across the South West. This interconnected system starts north in Kalbarri, runs through Perth, down to Albany in the south and extends to Kalgoorlie in the east. 

The Rewiring the Nation deal will fund priority projects across the SWIS to help boost the supply of renewable energy while connecting it to the grid by plugging in renewable generation hubs. 

Initial modelling suggests that in about two decades, the SWIS grid will require up to five times more electricity than available today as new industrial users connect to the grid. 

Investing in new energy grid projects will ensure the SWIS will remain fit-for-purpose while also ensuring cleaner, affordable and more reliable energy for West Australians into the future. 

“This announcement is about driving cheaper, more reliable energy in WA and setting the State up for years to come. 

“Renewable energy is the cheapest form of energy and the Rewiring the Nation deal will put downward pressure on electricity bills for WA consumers in the years ahead. 

“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 come with it,” Federal Climate Change and Energy Minister Chris Bowen said. 

On the other hand, the NWIS in the Pilbara region is made up of largely standalone networks owned by private companies and public entities. Only a small portion – about less than two per cent – of electricity is generated from renewables. 

The agreement between the two Governments will support more renewable energy in the NWIS, at the same time ensuring existing infrastructure upgrades are coordinated between industries and Governments. 

The Rewiring the Nation deal build on the momentum of the Pilbara Industry Roundtable, which is a significant State Government-led initiative that included some of Western Australia’s major resources companies. 

The deal will not only unlock economic development, but it will also speed up decarbonisation by bringing on more renewable energy and sharing it more efficiently across different users. 

Both the Australian and Western Australian Governments will work closely with First Nations Australians to further understanding on their views on this investment as well as support their participation in the State’s clean energy transformation. 

“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. 

“It is expected the private sector will largely fund the cost of renewable energy generation and transmission infrastructure in the Pilbara, to the tune of tens of billions of dollars over the coming deacades. 

“The low-cost finance program will help unlock this significant investment. 

“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 recent Budget to kickstart early network planning,” WA Minister for Energy Bill Johnston said. 

Source: Government of Western Australia – Media Statements; Prime Minister of Australia – Media; PV Magazine Australia; News.com.au; Renew Economy