WA to spend $3b on battery storage and wind power

The West Australian government will spend almost $3 billion on a renewable battery storage system and wind generation as part of a major overhaul of its energy network as it prepares for the retirement of coal-fired power plants.

Premier Mark McGowan will outline the $2.8 billion spend in Thursday's state budget, which will fund the construction of a 500 megawatt battery energy storage system in the southern coal town of Collie before the end of 2025.

The WA government will allocate close to $3b for new battery storage and wind power in it's state budget.

The new system will provide around 500 megawatts for up to four hours, while additional cash will be allocated to a 200MW battery in the southern suburb of Kwinana. These batteries will collect excess energy from the state's rooftop solar system during the day and release it at peak periods.

Mr McGowan said the new battery storage was essential in transitioning the southwest energy system towards net-zero by 2050, and stabilising the grid ahead of the retirement of coal-fired power plants in coming years.

"This major investment in the 2023-24 State Budget will deliver cleaner energy that's reliable and affordable, building a stronger future for WA," he said.

"These projects will help to decarbonise our main electricity grid, and Western Australian households as a result, facilitating the retirement of State-owned coal-fired power by 2030 while ensuring a stable and reliable electricity system."

Another $370m will be spent on new wind farm expansion at King Rocks, and potentially another near Warradarge Wind Farm near Eneabba.

The government expects these projects, which were flagged last year as the government announced the retirement of two state-owned coal-fired power plants, to contribute an extra 210MW to the grid.

The major funding allocation comes a day after WA Energy Minister Bill Johnston flagged a major expansion to the South West Interconnected System (SWIS), foreshadowing more than 4000 kilometres of new transmission lines would be required within 20 years.

Mr Johnston said the current system was too small to accommodate an expected tripling in demand as the private sector begins transitioning to green energy to power heavy industry in WA.

He said the multi-billion battery storage capacity would help transition the current grid away from a high-emission, thermal generation base to a low-emission renewable system.

"This significant investment in battery storage in this Budget will ensure new renewable generation is ‘firmed’ so electricity supply can always meet demand in an increasingly green grid," he said.

The WA government plans to expand the SWIS are contained within a new assessment document released on Tuesday, nine months after the government committed to a fast-tracked review of future electricity demand on the network.

The SWIS runs from Kalbarri, more than 500 kilometres north of Perth, through the capital and south to Albany, extending to Kalgoorlie in the east.

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