State creates $1.4 billion fund to connect more wind and solar ahead of coal power exit

Western Australia’s Labor government is to create a new $1.4 billion Clean Energy Fund to pay for new network extensions and upgrades to connect more renewables to the grid before the state shuts down the last of its coal fired generators at the end of the decade.

The funding, to be included in 2026-27 State Budget will support projects such as Clean Energy Link (CEL) – East which will expand the state grid in the south and provide access to a number of new wind and solar projects.

That work will build on CEL – North, which is currently under construction and will reinforce the northern section of the state’s grid, known as the SWIS, or South West Interconnected System – and enable more wind and solar power to flow from Mid West region and Perth.

The work includes high-capacity transmission lines, terminals, substations, and transformers, and the government says it will support around 3 gigawatts (GW) of renewable energy capacity, and create around 800 local jobs during the construction phase.

“This critical project will create hundreds of local jobs and allow us to capitalise on our State’s abundant wind and solar resources,” said Amber-Jade Sanderson, state minister for energy and decarbonisation.

“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

CEL – North is currently on target for completion in late 2027, while CEL – East is expected to be online by the end of 2029. Both will be declared priority projects.

The state has vowed to close the last of its coal fired power stations by the end of the decade, but the lack of grid capacity has proved a bottleneck for many proposed wind and solar projects, with curtailment levels high in some of the best areas.

The state government has been accelerating plans to replace coal, including the construction of multiple new big battery projects and has recently announced priority for four new wind projects and off take agreements for three of them.

It has also provided planning approval for a couple of key wind farm projects in the south-west corner, to take advantage of the significant wind resources in the area.

The government also announced that Clean Energy Link – Kwinana will also soon be declared a priority project under the Act. CEL – Kwinana is expected to deliver new terminals and transmission lines to support 900 megawatts (MW) of new energy demand in the Western Trade Coast.

See also: State rolls out red carpet for four new wind projects in race to replace ageing coal generators

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