Western Australia’s shift from coal and gas to renewables has taken a major step forward with the federal government backing more than 2 GW of new renewable energy and battery storage projects set to be built across the state.
Image: Synergy
The Australian government has announced the results of Tenders 5 and 6 under its Capacity Investment Scheme (CIS) with the initiative now supporting almost 1.9 GW of new renewable generation and 482 MW of battery energy storage across 10 projects in regional Western Australia (WA).
CIS Tender 5, the first generation-tender in Western Australia’s Wholesale Electricity Market (WEM), will deliver seven new projects, including China-headquartered Trinasolar’s planned Killawarra solar-battery hybrid project. The project, being developed in the northern Wheatbelt region, comprises 350 MW of solar and a 2,100 MWh integrated battery. The generation tender will also support six wind farm projects with a combined 1,536 MW generation capacity.
Three dispatchable storage projects have secured support under CIS Tender 6, including Enpowered and Plenary Group’s Collie solar farm and battery hybrid installation planned for the state’s southwest. The project includes a 200 MW / 1,518 MWh battery and a 66 MW solar farm. Other successful projects under Tender 6 include Neoen’s proposed 200 MW / 1,600 MWh Yathroo battery and Frontier Energy’s 82 MW / 565 MWh Waroona project.
Due to be operational by 2030 – when WA’s state-owned coal-fired power stations are set to be retired – the 10 projects represent more than $5 billion of new investment and are expected to generate 7,000 jobs during construction.
AusEnergy Services Limited (ASL), which is overseeing the delivery of the CIS initiative for the federal government, said it will now commence final contract negotiations with the successful projects. Under the CIS, successful projects are offered long-term revenue agreements where the federal government effectively underwrites a project against an agreed revenue ‘floor’ and ‘ceiling’.
ASL noted that these are the first CIS tenders with a reserve list, meaning projects that showed sufficient merit during the selection process may be considered if the chosen projects do not progress to contract execution.
Federal Assistant Energy Minister Josh Wilson said the tenders had been “significantly oversubscribed” with 25 projects contesting the tender, a result that allowed the government to deliver more than what was originally sought.
“In the case of the generation piece, tender five, instead of the 1.6 GW, we’re delivering nearly 1.9 GW,” he said. “In terms of the dispatchable energy tender, three projects that instead of delivering 2,400 MWh, we’re delivering 3,600 MWh, a more than 50% increase on what we sought.”
The tenders are the latest in federal government’s CIS, that aims to deliver 40 GW of new solar, wind and dispatchable capacity across the nation out to 2030, to support electricity generation growth and reliability as demand grows and ageing coal power stations retire
In addition to the latest announcements, the federal government said 65 projects have been chosen across the country under the CIS, which translates to 13 GW of renewable generation and 21.6 GWh of clean dispatchable capacity.
Successful projects Tender 5 – Renewable generation:
Successful projects Tender 6 – Dispatchable capacity:
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