Albanese hands $3b to decarbonise remote WA Tom RabeAug 29, 2023 – 4.46pm
The federal government will pour billions of dollars into Western Australia’s north-west energy grid to spur a private sector transition to renewable power in the state’s mining heartland.
Prime Minister Anthony Albanese on Tuesday announced $3 billion in concessional loans and equity investment from the Clean Energy Finance Corporation would be allocated to projects that expand and modernise WA’s energy grid.
Prime Minister Anthony Albanese with Rio Tinto representatives in the WA Pilbara. AAPnone
The majority of the money will be spent on projects in the Pilbara, which Energy Minister Chris Bowen said had Australia’s hardest grid to decarbonise. Renewables currently account for just two per cent of the region’s energy.
Mr Bowen said the taxpayer funded investment into the north-west grid, much of which is owned by the private sector, was required to encourage companies to move towards renewable energy in the heavily industrialised region.
“If we leave it all to the private sector, it won’t happen, if we leave it all with the state government, it won’t happen and if it was just us it wouldn’t happen – it needs all three of us working together,” he said.
“The point about this $3 billion investment is that it’s going to unlock expenditure much bigger than that.”
Mr Albanese was joined by federal cabinet in Perth on his 15th trip to WA since the May 2022 election, and lauded the state for its economic contribution and geopolitical importance given its close relationship with China and other Asian economies.
“My team and I have always understood that WA is so much more than Perth. This is a huge state – and it makes a huge contribution,” he said.
“You are a powerful proof point that a fair and open trading relationship with China serves the prosperity and progress of both our nations.”
While most of the investment will flow to the north-west of the state, WA Energy Minister Bill Johnston said some money would also be used to bolster the south-west interconnected system around Perth.
The southern system runs from Kalbarri in the north, through Perth and Albany in the state’s south to Kalgoorlie in the east, servicing about 1.1 million customers.
Government modelling suggests the grid will need to hold up to five times more electricity than is currently available within 20 years to service major new industrial users.
Mr Johnston said the Pilbara had historically been a difficult region for renewable energy because it has a patchwork of private systems.
“You need to be able to size the infrastructure so that as the demand for renewable energy grows over time, you’ve already got the infrastructure in place to move the renewable energy around,” he said.
“So because you need to oversize these projects beyond what the private sector itself would fund, you therefore need government help.”
The state government anticipates the $3 billion investment will create about 1800 jobs across the state.
Opposition WA energy spokesman Steve Thomas said the state’s energy transition plan was still undercooked.
“We will face an energy crisis by 2027 under the current plan, and the state government is obviously still waiting for the Commonwealth and the private sector to ride to our rescue,” he said.
“The state will need far more energy storage than the current plan, which will cost billions more.“
RFX Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
(20min delay)