Power grid connection cost consultation shows WA energy transition ‘failing’, State Opposition says

The Cook Government says the consultation process on a new transmission connections contributions model for WA’s main energy grid will help the State become a “renewable energy powerhouse”. The State Opposition begs to differ, however, saying the move is another demonstration that it is years behind in the roll-out of its “failing” energy transition. The Government on Thursday announced it would start to consult on new transmission connection contributions model for the South West Interconnected System. It said it was proposing to require new and expanded transmission connections to pay $100,000 per megawatt from July 1 next year, with the change to provide greater certainty for renewable energy investments. The Government said this “simplified” model would replace Western Power’s current arrangement, which required first movers to pay the bulk of capital costs. It said with almost $1.7 billion already committed to deliver Clean Energy Link transmission projects, the new approach would provide greater certainty for proponents while balancing the cost of delivering this major infrastructure investment. Energy and Decarbonisation Minister Amber-Jade Sanderson said Clean Energy Link would unlock new renewable generation, strengthen the main energy grid, and power a more diverse and resilient WA economy. “Industry needs transparency and certainty as we expand the network in our drive to become a renewable energy powerhouse,” she said. “This fixed capital charge gives generators, energy-storage providers and large users a clear understanding of contribution arrangements so they can invest with confidence.” Shadow energy minister Steve Thomas said the State was supposed to be halfway through WA Labor’s energy transition process, but the government was just starting to consult on how new generation capacity got connected. “This lethargic performance explains why almost nobody in the energy sector believes the Government has any chance of exiting coal-fired generation on their current timeline,” he said. Dr Thomas said the projected cost of $100,000 per megawatt hour had been floating around in discussions within the energy industry for more than a year. “It means a modest 100MW project has to factor in a $10 million connection cost, and a more ambitious 1000MW proposal like a large renewable project will have to find $100m to pay the State,” he said. “It is appropriate for businesses to pay to access our isolated and independent Western Australian grids, but the delay in setting the rules and the costs is another unnecessary hurdle for businesses to overcome. “Given the glacial pace of the Government’s transition, it’s no wonder they are desperate to get the State Development Bill through the Parliament, but even that won’t save their day.”