W.A. Reverses Decision, Pledges Subsidies to Sustain Coal Generator
The Western Australia government has reversed its earlier decision regarding subsidies for the state’s sole privately operated coal generator. This change comes less than six months after officials stated that they would no longer fund further payments to the facility.
Government Commitment to Coal Generation
The Cook Labor government has already allocated over $300 million to the Griffin coal mine since late 2023. This funding aims to maintain coal supply to the Bluewaters generator until at least mid-2026. Recent delays in transmission projects and the development of new wind and solar energy sources prompted the government to reconsider its position.
Statements from Premier Roger Cook
Premier Roger Cook emphasized the necessity of coal in supporting energy security during this transition period. He stated, “Coal will be needed to underpin energy security as we build transmission lines to connect large-scale wind and solar projects to our power grid.” However, he did not disclose the specific amount of financial support required. Cook mentioned that all financial details would be revealed in parliament once agreements are finalized.
Impact on Local Energy Infrastructure
Western Australia’s state-owned generators in Collie are set to shut down by 2029. The region is also home to Australia’s two largest battery storage projects, operated by Neoen and Synergy. Despite these developments, there has been limited expansion in wind and solar energy, prompting the need to extend the life of Griffin Generator to prevent energy gaps.
Support from Mining and Energy Union
The Mining and Energy Union (MEU) has welcomed this decision. According to MEU district president Greg Busson, extending support for five years allows for the continued operation of the loss-making Ewington mine. He described the government’s commitment as a practical step that ensures job security for workers and stability for the Collie community during this transition.
Calls for a Renewable Energy Target
CEO John Grimes of the Clean Energy Council urged the Cook government to establish a Renewable Energy Target by 2030. He argued that confidence in the energy transition relies on demonstrating that outdated infrastructure will not obstruct investments in more economical and reliable alternatives.
Future Energy Solutions
Grimes pointed out that firmed renewables, when coupled with batteries and advanced transmission systems, represent the most cost-effective solutions for new energy generation. He stressed the importance of government discipline in reallocating investments towards infrastructures that ensure long-term cost reductions.
Government’s Future Directions
Amber-Jade Sanderson, the state energy minister, reaffirmed the government’s commitment to retire state-owned coal generators by the end of the decade. She remarked that a mix of renewable energy, supported by gas and battery storage, would offer the most economical options for households and businesses. Extending the State Agreement represents a proactive measure to provide assurance to the industry, the Collie community, and the overall power system as it navigates the energy transition.
