The
Albanese and Cook Governments have signed a landmark agreement to power
the next stage of Western Australia's growth with affordable and more secure
renewable energy.
The Commonwealth-Western Australia Rewiring
the Nation deal will bolster WA's energy security by expanding and modernising
electricity grids in Perth, the South West, as well as in the North West Pilbara
region.
The
Albanese Government will provide up to $3 billion through concessional loans
and equity investments to WA through the Clean Energy Finance Corporation (CEFC)
to new builds and major upgrades to transmission in the State's major electricity
grids – the South West Interconnected System (SWIS) and the North West
Interconnected System (NWIS).
Priority
projects in these grids were identified through WA's demand assessment processes,
with recent Australian Energy Market Operator modelling supporting the need for
sustained investment in transmission infrastructure in the SWIS.
An investment of this scale is expected
to support around 1,800 construction jobs, and unlock future projects across
WA, helping to empower regional communities.
The SWIS is WA's main electricity network,
and serves more than 1.1 million residential and business customers in Perth
and across the South West. It starts north in Kalbarri, runs through Perth,
down to Albany in the south, and extends to Kalgoorlie in the east.
This deal will finance priority projects
across the SWIS to increase the supply of renewable energy, and connect it into
the grid by plugging in renewable generation hubs.
Initial modelling suggests that in 20 years'
time, the SWIS grid will need to have up to five times more electricity than is
available today, as new industrial users connect to the grid.
Investing in new energy grid projects
will ensure the SWIS remains fit-for-purpose and ensure cleaner, affordable and
more reliable energy for West Australians into the future.
The Pilbara's NWIS consists of largely standalone networks owned by private companies and
public entities, with only a very small proportion (less than two per cent)
of electricity generated from renewables.
This agreement will support more
renewable energy in the NWIS, while ensuring existing infrastructure upgrades
are coordinated between industries and Governments.
This
Rewiring the Nation deal builds on the momentum of the Pilbara Industry
Roundtable, a significant WA Government-led initiative, which included some of
the State's major resources companies.
It will
unlock economic development and speed up decarbonisation by bringing on more
renewable energy and sharing it more efficiently across different users.
The Australian and WA Governments will
work closely with First Nations Australians to understand their views on this
investment and support their participation in the State's clean energy
transformation.
Comments attributable to Prime Minister
Anthony Albanese:
"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.
"On
the weekend I visited Karratha and saw firsthand the economic power of the Pilbara
– as the global economy decarbonises we need to provide opportunities for
regions like the Pilbara to be powered by as much renewable energy as
possible."
Comments attributable to Premier of
Western Australia Roger Cook:
"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."
Comments attributable to Federal Climate
Change and Energy Minister Chris Bowen:
"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 Australianand
WestAustralian Governments are enabling WA to capitalise on the
renewable energy transformation and make the most of the incredible jobs
opportunity that comes with it."
Comments attributable to Western
Australian Minister for Energy Bill Johnston:
"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 decades.
"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 the recent Budget to kickstart early network planning."
