Perth, WA – Western Australia has formally committed to an ambitious 75% renewable energy target for its main electricity grid by 2030-31, a significant policy shift aimed at securing cheaper, cleaner power for households and businesses. The announcement, made on October 27, 2026, includes a substantial AUD 2.5 billion investment in new transmission infrastructure and a further AUD 150 million program to support industrial energy affordability.
The bold target for the South West Interconnected System (SWIS) doubles the state’s previous goal of 40% renewables and signals a clear pathway away from coal-fired generation, with state-owned coal plants scheduled for retirement by the end of this decade. The move is expected to attract significant private sector investment and reshape Western Australia’s energy landscape.
Driving Down Costs with Renewables and Transmission
WA Energy Minister Amber-Jade Sanderson stated that the new 75% target is a “statement of intent” designed to encourage private sector investment, emphasising that “renewables, backed by storage and gas, is the cheapest and most reliable energy mix for Western Australia.” This strategic direction aligns with broader national efforts to modernise Australia’s electricity grids and integrate a growing share of renewable generation.
The AUD 2.5 billion commitment to the Clean Energy Link transmission infrastructure is central to achieving this goal. This critical investment will facilitate the connection of large-scale solar, wind, and battery energy storage projects to the SWIS, which is essential for maintaining grid stability and reliability as intermittent renewables increase their share of supply. Transmission upgrades are consistently highlighted by bodies like the Australian Energy Market Operator (AEMO) as vital for the energy transition across the country.
Modeling undertaken by the Department of Energy and Economic Diversification projects that without these initiatives, industrial energy prices in WA could surge by 89% by 2032. The government’s plan seeks to mitigate these increases by leveraging the falling cost of renewable energy and ensuring the necessary grid infrastructure is in place.
“The priority now is to keep the grid build moving and lock in dates for its next stages.” — Jessica Panegyres, Solutions for Climate WA Director
Industrial Support and Energy Affordability
In addition to the transmission investment, the state government has launched the Made in WA Energy Affordability Investment Program. This AUD 150 million initiative offers low-interest loans of up to AUD 15 million to manufacturers. The program, open for applications since October 27, 2026, aims to help industrial businesses install solar and battery systems and upgrade equipment to capitalise on cheaper energy.
This direct support for businesses underscores the government’s dual focus on decarbonisation and economic competitiveness. By enabling manufacturers to invest in their own on-site renewable generation and storage, the program reduces their reliance on the grid during peak demand periods, contributing to overall system stability and reducing strain on the network.
The Role of Storage and Gas in WA’s Future Grid
The plan explicitly acknowledges the need for renewables to be “backed by storage and gas.” While the long-term vision is for a predominantly renewable grid, gas will continue to play a role in firming capacity during the transition, particularly as state-owned coal-fired power stations like Muja and Collie retire by 2030. This echoes AEMO’s Integrated System Plan (ISP), which identifies a least-cost pathway for the National Electricity Market (NEM) built around renewable energy, firmed with storage and backed up by gas.
Battery energy storage systems (BESS) are becoming increasingly vital for grid stability, providing rapid response services and integrating higher levels of renewable penetration. Recent data from the Clean Energy Council indicates a surge in battery projects across Australia, with 9 utility-scale batteries representing 2.3 GW/7.1 GWh of storage capacity switched on in the first half of 2026 alone. Furthermore, the Clean Energy Regulator reported that by October 2026, over 400,000 home batteries, totalling 11.2 GWh, had been installed nationally, significantly contributing to distributed energy storage.
For homeowners and businesses in Western Australia considering energy storage solutions, understanding the benefits of such systems, especially when paired with solar, is crucial. Is a Home Battery Worth It in 2026? Unlocking $1,000s in Savings for Your Existing Solar and Your 2026 Guide: Precisely Sizing a Home Battery for Your Solar System & Usage provide valuable insights into maximising these investments.
Broader Implications for Australia’s Energy Transition
Western Australia’s accelerated target is a strong signal within the broader Australian energy transition. While WA’s SWIS operates independently of the NEM, its challenges and solutions – integrating high levels of renewables, managing coal plant retirements, and investing in transmission – mirror those faced by the eastern states. The commitment to a domestic gas reservation policy will also continue to support gas supply for critical industry and a limited amount of gas-fired electricity.
The state’s proactive approach to grid modernisation and renewable energy integration provides a case study for how Australian jurisdictions can navigate the complex shift to a clean energy future. As the energy market evolves, comparing electricity retailers and understanding diverse electricity plans will remain key for consumers seeking to manage their power bills. Compare Electricity Retailers 2026: Unlock $150+ Annual Savings in Australia offers guidance on this for consumers across the country.
The 75% renewable energy target by 2030-31 represents a significant step for Western Australia, underpinned by tangible investments and policy measures designed to ensure a reliable, affordable, and sustainable energy supply for the coming decades.