Infrastructure WA

43. Enable transformation of the South West Interconnected System by evolving the Whole of System Plan and ensuring implementation actions are transparent, including:  

1. updating modelling inputs, assumptions and scenarios to incorporate the following: 
   • achieving interim emissions reduction targets (once defined) and net zero emissions by 2050 targets through the lowest-cost mix of generation, storage, network transmission and distribution
   • potential renewable energy generation locations on the network, such as the Mid West, on energy network infrastructure requirements 
   • electricity offtake associated with the development of new industries in line with state government industry development objectives
   • potential entry of existing off-grid large users connecting to the South West Interconnected System and rates of potential electrification across commercial, industrial and residential users
   • using technologies (such as energy storage) to reduce the curtailment of renewable energy generation, and the practicality and community acceptance of any curtailment assumptions 
   • accelerated delivery of energy storage and other Distributed Energy Resources technologies, including the impacts these have on the overall energy infrastructure investment program 
   • increased uptake of electric vehicles on the energy network, including increased demand for energy and energy storage opportunities from electric vehicle batteries  
2. publishing a detailed short-term to medium-term implementation plan for the most likely scenario, which is updated periodically and identifies:
   • current and planned investment
   • network constraints
   • opportunities for investment in programs and projects to deliver energy transformation, including the nomination of priority projects eligible for streamlined approval processes.   

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 43 is partially supported. For further information please refer to the response document.

Provide a long-term view on energy generation, demand and network infrastructure requirements by preparing a North West Interconnected System energy futures report. The report should:

• align with interim emission reduction targets (once defined) and net zero emissions by 2050 targets
• test and resolve to what extent interconnection should occur in the system and the infrastructure needs to support this, along with any adjustments to access arrangements
• define the role of state agencies, government trading enterprises and the private sector
• support the identification of suitable sites for large-scale renewable energy generation and storage in proximity to industrial land and high energy users
• inform the evaluation of key project proposals, including the Burrup Common User Transmission Line and East Pilbara Link. 

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 44 is fully supported. For further information please refer to the response document.

Increase energy system reliability and resilience, reduce emissions and drive cost-effectiveness by accelerating a dedicated program of energy storage, microgrids, virtual power plants and standalone power systems The program should include: 

• providing appropriate coordination and allocating funding
• identifying feasible locations across the state 
• investigating future energy storage options, including hydrogen, pumped hydro, batteries and other energy storage technologies. 

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 45 is fully supported. For further information please refer to the response document.

46. Ensure the legislative and regulatory framework enables energy infrastructure that aligns with broader public policy outcomes by:

1. reviewing and revising energy legislation, regulations, codes, guidelines and associated decision-making documents and processes (particularly relating to the New Facilities Investment Test), to include the interim emissions reduction (once defined) and net zero emissions by 2050 targets, urban infill and industry development objectives in a manner that does not unduly disadvantage first or last movers
2. reviewing the effectiveness of guidance and assessment for investment proposals under the current objectives of the Electricity Network Access Code 2004, as well as the expected levels of information and analysis required from proponents
3. consistent with Recommendation 40 in the Infrastructure delivery chapter, establishing a clear policy position on the role of government and the private sector in funding, financing and delivery of enabling infrastructure, such as transmission lines, in order to support industry growth and decarbonise the energy sector. 

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 46 is partially supported. For further information please refer to the response document.

47. Support the development of the state’s hydrogen industry by:

1. accelerating the reform of legislation, standards and policies 
2. investigating options for stimulating domestic market demand, as a precursor to establishing export industry demand
3. investigating the feasibility of a hydrogen refuelling network on key freight routes across the state through the planned detailed supply chain model for renewable hydrogen
4. publicly reporting the Western Australian Renewable Hydrogen Roadmap’s actions on an annual basis, including timing, available funding and transition pathways such as the role of blue hydrogen 
5. investigating the feasibility of, and prioritising large-scale hydrogen industry precincts that leverage energy, water and transport infrastructure, a skilled workforce and market proximity, including:
   1. consistent with Recommendation 43a, developing energy consumption and generation projections, for use in the Whole of System Plan modelling, to determine the need for energy infrastructure to enable hydrogen precincts, such as the Mid West Transmission Line
   2. coordinating activities for development readiness of precincts across environment, heritage, planning and tenure matters  
   3. consistent with Recommendation 40 in the Infrastructure delivery chapter, establishing a clear policy position on the role of government and the private sector in funding, financing and delivering enabling infrastructure to support the hydrogen industry (including factors such as seed funding, co-investment and cost recovery)
   4. developing and implementing a staged program of hydrogen industry enabling infrastructure including publicly and privately funded upgrades or new infrastructure for energy networks, refuelling stations, water and transport infrastructure. 

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 47 is fully supported. For further information please refer to the response document.