Western Australia Goes to the Polls: What’s in Store for Energy?
As early voting opened ahead of Western Australia’s 8 March state poll energy issues and proposals continued to make headlines.
In particular, the ALP’s announcement that if re-elected it would provide generous support to households to install battery storage was prominent and may be a portent of Federal party pledges. There have also been questions raised about whether a re-elected ALP government would be successful with its energy transformation plans to allow the phasing out of state-owned coal plants by 2030 and is on track to introduce the new transmission lines needed to support the shift to more renewables.
In contrast to the Labor position, the Liberal Party has pledged to maintain and extend the state’s coal plants until more gas generation can be brought into the system. Regardless, both of the major parties continue to support a net zero by 2050 target.
The Nationals have announced support for microgrids to support regional power delivery and for more stringent approval processes and requirements on renewable energy projects in regional areas, while the Greens are promoting a 10 per cent Clean Energy Transition Levy on existing onshore gas projects, a gas transition plan and a 2030 emissions reduction target and renewable energy target.
Below we outline more details on key policies from the parties.
ALP Commitments
Labor’s energy policies are largely driven by its existing commitments and energy transition plans introduced since it took office in 2017. Since that time the Labor Government has committed to an energy transformation strategy including the closure of state-owned coal plants, Collie and Muja, by 2030 and the introduction of more renewables and additional transmission investments. During the campaign it has reaffirmed its position on coal closures, and ALP leader Roger Cook remains bullish about the development of onshore wind and solar projects and the state’s ability to stop drawing on coal-fired electricity while the State’s Energy Minister Reece Whitby has said the government is on track to meet its targeti.
During the campaign Labor has committed to supporting local manufacturing of transmission lines and steel infrastructure pledging $75 million to develop steel fabrication facilities with new Western Power Manufacturing facilities expected to boost the capacity of local steel fabricators to manufacture transmission components locally. They would target the manufacture of transmission components such as lattice towers, pile reinforcement cages, poles, wires and substation components. The stated aim is to support the need for “thousands of kilometres” of new transmission lines to connect new wind zones in the state’s South-West, Mid West, Wheatbelt and Great Southern regions. A new Advanced Manufacturing and Technology Hub (AMTECH) precinct would also be established with the Western Power Manufacturing Facility an anchor tenant and would invite interest from wind turbine developers to build footings, towers and turbines locallyii.
It has also committed to investing $50 million to support local battery manufacturing. Under the Battery Manufacturing Program eligible WA battery manufacturers will have access to a $30 million competitive grants program to grow their capacity to provide residential battery products. There will grants of be up to $10 million to be matched dollar for dollar by the proponent. The package will also offer $20 million for low-interest loans or State land with the aim of encouraging new investments in technology and expanded production facilities.
A re-elected Labor Government will also invest $150 million to develop a Western Australian-made 50 MW vanadium battery in the major goldfield centre of Kalgoorlie. The aim is to have the 50 MW, 10-hour battery operational in 2029 and locate it near existing transmission lines. Kalgoorlie experienced blackouts in January last year with the Labor Government committing to replacing two gas-fired generators at the West Kalgoorlie Power Station by 2026 and taking other measures to support security of supply. The plant provides back up power for the region’s network.
Small-scale batteries for homes are also a major feature of the ALP’s new energy initiatives for re-election. The party has announced a $387 million rebate plan known as the WA Residential Battery Scheme. Slated to begin on 1 July 2025 it will offer one-off rebates of up to $5000 for Synergy customers and up to $7500 for Horizon Power customers in more remote areas. The amount will be based on the battery size. Labor expects the scheme will more than double the number of residential batteries in the state. According to Clean Energy Regulator data in 2024 there was a 22 per cent growth in the number of solar PV systems with batteries installed in Western Australian homes (3709). The state now has 13,009 small-scale solar and battery systems installed.
The grants are paired with a means-tested no-interest loan program targeted at 20,000 low and medium income homes to cover the cost of buying a subsidised battery. The loans will be up to $10,000 and repayable over 10 years. Labor expects the initiatives to boost residential battery capacity by 200 MW.
Liberal Party Commitments
The Liberal Party has committed to maintaining WA’s coal plants and extending the operational life of the Collie A and Muja units (7 and 8) until new gas generation is builtiii to ensure grid stability. Its platform states a Liberal Government would “maintain coal use where necessary, until gas generation is ready to replace it”. Its Energy Policy 2030 document included a caveat that maintaining the plants would depend on the viability of existing units and coal supplies.
To increase gas generation it would back a 300 MW gas-fired plant and invest $264 million to upgrade the Dampier to Bunbury Natural Gas Pipeline to ensure fuel supply as coal is phased out and to support flexibility in the state’s energy mix. Construction of the gas generator is targeted for 2027 with commissioning in 2030, but it is unclear who would actually build the plant. The aim of this approach is to mitigate risks associated with an abrupt transition, where premature decommissioning of coal could result in supply disruptions or volatility in energy prices.
While committing to carbon neutrality by 2050, the Liberal Party has emphasised it can’t “come at a cost of reliability or affordability for Western Australian families”. This includes not only scaling up renewable generation capacity but also the integration of advanced storage systems to address the intermittency issues inherent in renewable energy sources. The party’s plan also prioritises the development of emerging technologies, including vanadium-based energy storage solutions, which they argue are crucial for large-scale storage and grid stability in a renewable-dominant energy future.
This includes investment in long-duration storage technologies, such as vanadium redox flow batteries, which they believe are critical for enabling deeper renewable penetration in Western Australia’s grid. The party sees these technologies as pivotal for achieving a reliable and low-carbon energy system capable of meeting future demand while minimising costs.
The Liberals are keen to position Western Australia as a leader in energy innovation, leveraging its abundant natural resources to develop next-generation energy storage and generation technologies. The party has said it will support the expansion of the vanadium industry through a five-year royalties exemption for vanadium mines. By fostering the growth of industries such as vanadium, which plays a crucial role in energy storage, the party believes Western Australia can support both domestic energy needs and play a role in the global energy transition. This dual focus on environmental sustainability and economic opportunity reflects the party’s belief that the energy transition should drive innovation and new industries.
A WA Liberal Government will continue with the existing state plans for 4,400MW of lithium battery storage and 810 MW of wind generation, most of which is already in place through Synergy. The Liberals also argue the full transition will require “far more renewable generation capacity and far greater storage than currently planned.”
While the Federal Liberal Party has committed to building nuclear power plants including in Collie in Western Australia, the state party has adopted a watch-and-see approach. In its Energy Policy 2030 document the Liberal Party said that it would monitor technological developments and was source agnostic and “will retain the capacity to adopt developing technologies. The Western Australian Liberal Party is not afraid to look at nuclear power generation for the state energy grid when it becomes economically viable.” The Policy states that if the economics of small-scale nuclear generation stacks up in the future, it would take a closer look. The West Australian Liberal Party leader Libby Mettam has previously stated a Liberal Government would overturn a ban on uranium mining to create thousands of new jobs and diversify the local economy, and on nuclear power said while not ideologically opposed to local plants they do not “stack up economically for the state just yet”iv.
The Liberal Party has also announced that it would remove what it labelled “Labor’s energy tax” – the party’s name for an increase in the electricity fixed daily supply charge introduced in the 2017-18 State Budget. This increased the daily supply charge from 48.6 cents to 94.9 and increased an average household bill by $169 annually, a 10.88% increase in power bills. The party has committed to cutting the rate to 67.6c per day with the cost estimated to be $676m over four years.
The Nationals WA Commitments
The Nationals would implement a comprehensive State Planning Policy for renewable energy projects if in government to ensure regional communities are consulted, considered, and benefit from proposed developments across Western Australia.
The aim is to establish a clear, consistent framework for large-scale renewable energy projects and address “significant gaps in the current planning system”.
The Nationals WA would also seek to empower local governments by mandating community impact assessments and giving local governments a formal role in assessing projects before they proceed to the State Development Assessment Unit.
The Nationals WA would also mandate community benefit funds to ensure host communities receive “a tangible return from renewable developments”.
Renewable energy projects would also need to prepare a decommissioning plan as part of their application and make annual contributions to a State managed decommissioning fundv.The Nationals have proposed further development of microgridsvi in regional areas arguing that by leveraging advancements in technology, microgrids can minimise disruptions, improve reliability, and reduce reliance on fossil fuels. It has backed a pilot microgrid for the town of Mullewa in the state’s North West region, employing renewable technologies like solar and battery storage.
The Greens Commitments
The Greens have released policies that include:
- A Clean Energy Transition Levy on gas revenue
- A Gas Transition Plan for WA
- A 2030 Emissions Reduction Target & Renewable Energy Target
The Labor Government previously introduced a Bill to Parliament with emission targets but this lapsed in December last yearvii. The Climate Change Bill 2023 was described in State Parliament as a “significant milestone” in the government’s response to climate change. The bill would have introduced a 2030 interim emissions reduction target and then required emission targets to be set every five years from 2035 as well as an emission reduction strategy. WA Labor’s control of the State’s Upper House is expected to end at the election according to analysts, which would require a re-elected ALP Government to look to cross benches to get legislation through the Legislative Council. While the Greens currently only have one MP in the Legislative Council, Brad Pettitt, there are predictions the Greens could have four or five Upper House MPs in the new Parliament. The Greens have said that if the government requires their support in the Upper House there are a “range of things we want to see happen, around renewable energy, around climate”. The Greens have stated they would not support any new gas projects, want a 50 per cent reduction in carbon emissions by 2030 and would demand an end to any frackingviii.
Conclusion
Energy will remain a vital policy area for the next State Government. As we have noted the South West Interconnected System (SWIS) covering the major population centres in the state has had to contend with record peak demand and the highest demand days.
An issue identified in the most recent WA’s Wholesale Energy Market (WEM) Electricity Statement of Opportunities (ESOO) is a growing capacity shortfall over the next 10 years. While supply and demand are expected to be largely in balance over the next few years with additional capacity procured through Non-Co-optimised Essential System Services (NCESS) and Synergy’s large battery project in Collie, as WA nears the end of the decade there is a potential significant capacity shortfall. This is because of expected demand growth and coal plant departures from the market. A separate SWIS Demand Assessment 2023 to 2042 (SWISDA), published in 2023, outlined an even more challenging picture. One area that continues to be highlighted as needing to be urgently addressed to ensure new capacity is online to allow coal plants to exit is the pace of investment in needed transmission.
Clearly, given these scenarios, the energy transition will continue to require careful management regardless of who wins the forthcoming election.
[ii] Cook Labor Government to build Western Power infrastructure in WA
[iii] 672b7a3741666247ee91c69c_Building A Better Future (Priorities Doc) Web.pdf
[iv] WA Liberals pledge to overturn ban on future uranium mining leases if elected - Libby Mettam
[v] Nationals to ensure planning, consultation and community benefit for renewables – The Nationals WA
[vi] Nationals WA Microgrid Policy to Provide Energy Security in Regional WA – The Nationals WA
[vii] Progress of Bills
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