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Doubts raised over WA's coal phase-out amid renewables lag
WA Labor has been talking up the clean energy transition ahead of the state election. But industry experts say a lack of transmission and generation is slowing progress.
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WA Labor's promise to replace coal with renewables by the end of this decade is on shaky ground amid a lack of new transmission and generation, according to an industry expert.
Under a decision made by former premier Mark McGowan in 2020, state-owned power provider Synergy's two remaining coal-fired power stations are due to close by 2030.
The ABC understands Synergy has already allocated nearly 90 per cent of the $3.7 billion that was originally set aside for wind farms and large-scale battery projects to replace its retiring coal plants.
WA's electricity network will be under enormous pressure if there aren't enough renewables by the time coal goes offline. ( ABC News: Andrew O'Connor )
As part of the plan to retire coal, the government said Synergy would build 1100 megawatts of storage and, along with the Water Corporation, more than 800 megawatts of wind capacity.
Synergy is still about 400 megawatts short of its battery target.
It's understood the shortfall is even greater for new wind generation, with the combined goal for the Water Corporation and Synergy lagging more than 500 megawatts — or 60 per cent — behind target.
Energy consultant Peter Kerr said the government's timeline for retiring coal by 2030 seemed unlikely.
For Peter Kerr, there's doubt the phase-out will be punctual. (ABC News: Rhiannon Shine)
"We've got five years to meet this magical removal of coal from the system," he said.
"You need a certain amount of renewable energy to displace coal, and we're not building enough of it, and we're not connecting enough of it via new transmission lines."
Mr Kerr said the government had not moved quickly enough to construct the new transmission needed to connect renewables to WA's main power grid, the South West Interconnected System (SWIS).
The transmission upgrades are set to be costly, with Labor preparing to charge industrial customers $100,000 per megawatt for new transmission network connections to the SWIS to help cover the cost.
The plan has been slammed as "extortionate" by Australia's peak body for the renewable energy industry, which claimed the fee would divert investment away from WA and put a handbrake on the energy transition.
As West Australians prepare to head to the polls on March 8, Premier Roger Cook has been keen to highlight his government's plans for the green energy transition.
"Western Australia will be a renewable energy powerhouse," he told reporters in Collie last week.
"We are the only state in Australia who will be out of coal by 2030."
Mr Kerr — who previously worked as a senior executive at the state-owned Western Power – said that promise was in doubt.
Roger Cook continues to tout the green energy transition. (ABC News: Keane Bourke)
"Batteries don't produce power," he said
"That's the missing piece, wind generation."
Mr Kerr said the government would be in a better position to retire coal by 2030 if it had moved more quickly to invest in transmission.
"There is a bit of a stand-off between industry and government about who funds that," he said.
"I think some proactive investment on transmission would have helped matters greatly."
Last year a government assessment found the SWIS may need an additional 4,000km of new transmission lines over the next 20 years to decarbonise.
WA Greens MP Brad Pettitt said he had spoken to a range of renewable energy providers who were "frustrated" about WA Labor's plan to charge industrial customers an up-front cost of $100,000 per megawatt for new connections.
Brad Pettitt is concerned there won't be enough renewable energy come 2030. (ABC News: Rhiannon Shine)
"The government … want somebody else to pay for their transmission, but the unintended consequence is that we're losing investment," he said.
"The timeline for getting out of coal is under threat.
Renewable energy providers are facing high fees to connect to WA's energy network.(Supplied: Pacific Energy)
"A perverse outcome would be that they do try and close coal, but don't have enough renewable energy, and end up building a whole bunch of new gas fired power plants."
Connor Price from the Smart Energy Council described the connection cost as "extortionate".
"Developers recognise the need for capital contribution towards transmission to their projects, however a fee like that means that a one-gigawatt project is paying $100 million for connection," he said.
Connor Price says there are several obstacles to investing in renewables. (ABC News: Rhiannon Shine)
"WA is going to lose this investment, and for the projects that do stay, this high cost will be passed on to consumers."
Last year the state government shelved legislation that would have enshrined a commitment to reach net zero emissions by 2050.
Mr Price said WA's lack of any emissions reduction or renewable energy targets was an added handbrake on investment.
"We know that the climate bill got de-prioritised by the government, and we sincerely hope that following the March election, it can be top of the agenda with really strong targets," he said.
Mr Cook said the government would "continue to work with industry as they participate in the energy transition".
"Each year we spend a billion dollars in energy transmission related work already," he said.
"We will continue to need to see that investment to make sure that we have the poles and wires ready to go once we have that renewable energy coming on stream."
Asked recently whether the $100,000 charge was going to slow down progress, Energy Minister Reece Whitby said, "not at all".
"This government is investing billions of dollars — $5.4 billion in the transition," he said.
Reece Whitby is confident in the government is reaching its renewables goals.(ABC News: Kenith Png)
"People that come in and set up a wind farm or a solar farm need to make that commitment to local communities so that there are tangible lasting benefits for those communities as well."
Mr Whitby said the government was on target to meet its "ambition" of retiring coal by 2030.
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