Western Australia backs grid buildout ahead of coal exit

May 05, 2026 at 7:45 AM
Ev Foley
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Western Australia plans to establish a clean energy fund to support transmission and network projects, as state-owned coal-fired power plants approach retirement, according to the state government.

<p class="p1"><span class="s1">Western Australia plans to establish a clean energy fund to support transmission and network projects, as state-owned coal-fired power plants approach retirement, according to the state government.</span></p><p><strong>From <a href="https://www.pv-magazine-australia.com/2026/04/30/wa-commits-1-4-billion-to-deliver-clean-energy-ahead-of-coal-plant-closures/" rel="noopener" target="_blank">pv magazine Australia</a></strong></p>
<p>The Western Australia government plans to establish a AUD 1.4 billion ($1 billion) clean energy fund to support transmission and network services projects to boost delivery of clean energy.</p>
<p>The Australian state's government-owned coal-fired power stations are scheduled to retire by 2030, including the 340 MW Collie Power Station (2027) and approximately 454 MW Muja D Power Station (2029).</p>
<p>Details of the AUD 1.4 billion fund will be revealed in the state’s 2026-27 budget on May 7, but the government confirms it will support the building of network projects, Clean Energy Link (CEL) – East and CEL – North.</p>
<p><img alt="" class="alignnone size-medium wp-image-93801" height="467" src="https://www.pv-magazine-australia.com/wp-content/uploads/sites/9/2024/07/0184_south_west_interconnected_system_transformation_1-600x467.png" tabindex="0" width="600" /></p>
<p>The announcement comes on the back of a previous AUD 1.6 billion investment in the network over recent years, to facilitate the phase-out of coal generation by 2030 and support electrification of existing industries.</p>
<p>Delivered by state-owned network builder and operator Western Power, the CEL – East will expand the <a href="https://www.pv-magazine-australia.com/2025/12/05/western-australia-renewable-energy-generation-delivers-record-on-the-swis/" rel="noopener" target="_blank">South West Interconnected System</a> (SWIS) to distribute renewable energy to Perth and southwestern Western Australia.</p>
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<p>In the next stage of expansion it will connect new solar and wind projects east of <a href="https://www.pv-magazine-australia.com/2026/04/15/ugl-kicks-off-construction-of-six-hour-battery-project-in-wa/" rel="noopener" target="_blank">Collie</a>, which is located 200 km south of Perth, where a transition from coal-fired power generation to clean energy sources is underway, with the purpose of CEL – East to deliver reliable clean power to approximately 1 million households.</p>
<p>Western Australia Energy Minister Amber-Jade Sanderson said Clean Energy Link – East will create hundreds of local jobs and allow the state to capitalise on its abundant solar and wind resources.</p>
<p>“Clean Energy Link – East is a massive grid expansion for the state, which will deliver enough energy to power around 1 million homes and support industry to access cheaper, cleaner energy,” Sanderson said.</p>
<figure class="wp-caption alignnone" id="attachment_120390"><img alt="" class="size-medium wp-image-120390" height="620" src="https://www.pv-magazine-australia.com/wp-content/uploads/sites/9/2026/04/Untitled-design-53-600x620.png" width="600" /><figcaption class="wp-caption-text"><i>Image: Genus Group</i></p>
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<p>CEL – North, which is on track for completion in late 2027, with construction lead by Australian infrastructure designer GenusPlus Group on behalf of Western Power, is designed to improve access to renewable generation sources between Malaga and <a href="https://www.pv-magazine-australia.com/2026/01/07/pilot-opts-for-hybrid-project-over-standalone-solar/" rel="noopener" target="_blank">Three Springs</a>, respectively 12.5 km and 310 km north of Perth.</p>
<p>The project features high-capacity transmission lines, terminals, substations, and transformers installed on the network to unlock the flow of clean energy from the state’s <a href="https://www.pv-magazine-australia.com/2026/01/15/synergy-gets-green-light-for-2-gw-solar-wind-and-battery-project/" rel="noopener" target="_blank">Mid West</a>.</p>
<p>Together, CEL – North and CEL – East will deliver 3 GW of renewable energy to commercial, industrial and residential customers and will create about 800 local jobs during the construction phase.</p>
<p>Both developments will be declared priority projects under the State Development Act 2025, which will assist in streamlining approvals, improving whole‑of‑government co-ordination, and ensuring on time delivery.</p>
<p>CEL – Kwinana will also soon be declared a priority project under the act, delivering new terminals and transmission lines to support 900 MW of new energy demand in the Western Trade Coast.</p>
<p>In addition, the 2026-27 State Budget will include a further AUD 7 million to support state-owned regional energy provider Horizon Power’s work in transitioning to renewable energy in regional Western Australia, delivering increased renewable future energy systems for the West Kimberley, Coral Bay, Hopetoun, Denham and in the Pilbara.</p>
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Tags: Markets & Policy Amber-Jade Sanderson Clean Energy Link Markets
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