Federal Government to Provide Assistance to Western Australia for the Development of Solar and Wind Energy Projects

July 23, 2024 TruthUSA

Energy Minister Chris Bowen emphasized that the government’s renewables plan is essential for providing affordable and reliable energy for families and businesses in WA.

The federal Labor government has made a commitment to support Western Australia (WA) in constructing more renewable energy projects in the upcoming years.

On July 22, the WA government officially entered the Renewable Energy Transformation Agreement, becoming the fifth jurisdiction to join the bilateral energy partnership with the federal government.

The federal government stated that this agreement with WA would eliminate the barriers hindering the state from developing renewable energy projects.

Under the agreement, the federal government will support a minimum of 6.5 terawatt hours of new wind and solar projects and 1.1 gigawatts of new storage in WA.

The federal government explained that these investments would aid in stabilizing the power grid and ensuring that WA has sufficient “cheap dispatchable power” during peak times while enhancing energy reliability and affordability.

In return, the WA government has committed to phasing out its state-owned coal-fired fleets by 2030 and replacing them with renewable electricity generation and storage.

Simultaneously, both the WA and federal governments have pledged to enhance engagement with and deliver better economic outcomes for the local community.

This includes promoting Indigenous participation and benefits, improving skills and workforce development, and strengthening renewable energy supply chains.

WA has also initiated bidding for the state’s inaugural Capacity Investment Scheme (CIS) tender.

The CIS is a national scheme designed to introduce an additional 32 gigawatts of renewable generation and storage in Australia by 2030.

The first capacity tender in WA is anticipated to offer 2,000 megawatt hours of dispatchable capacity in the state’s Wholesale Electricity Market, which could power around 450,000 homes.

The signing of the agreement coincides with recent forecasts (pdf) by the Australian Energy Market Operator indicating that the state may encounter a gas shortage between 2024 and 2029, with expected supply from committed and anticipated projects falling up to 11 percent below projected demand.

Government’s Response

Energy and Climate Change Minister Chris Bowen expressed his satisfaction with the agreement, stating that it is the sole means for providing inexpensive energy for WA.

“Through our Renewable Energy Transformation Agreement, we are working together to overcome the remaining hurdles to the delivery of energy infrastructure and ensuring seamless progress across jurisdictions,” he declared.

“The Albanese government’s reliable renewables plan is the only plan supported by experts to deliver the cheap, reliable, and resilient energy system that families and businesses deserve.”

WA Energy Minister Reece Whitby noted that the state has already invested $5 billion (US$3.32 billion) in solar and wind farms and battery storage.

Furthermore, he believed that the launch of bidding for the CIS would enhance WA’s decarbonization efforts.

“We aim to continue providing clean, reliable, and affordable power to WA households and businesses,” Mr. Whitby affirmed.

“The acquisition of additional storage will be crucial for bolstering wind and solar power during peak demand, complementing existing public and private investments in large batteries in Collie and Kwinana.”

Meanwhile, Shadow Energy Minister Ted O’Brien criticized the federal government’s renewable energy policy.

“Currently, the prime minister and Chris Bowen have put us on this 100 percent ‘renewables only’ path, which is driving up the cost of your power bill,” he remarked during an event on July 22.

“This policy is contributing to the unreliability of our system. Therefore, when the energy regular refers to potential blackouts and brownouts in the future, it is based on Labor’s existing policy.”

Additionally, Mr. O’Brien stated that nuclear power could supply cheaper, greener, and more reliable energy to the nation.

“The Coalition’s approach of renewables, gas, and nuclear is essential for ensuring a reliable power supply, reducing costs, and lowering emissions,” he affirmed.

“Among the top 20 economies in the world, Australia is the sole country that has not embraced or committed to utilizing nuclear energy in its energy mix.”

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