The Chamber of Minerals and Energy WA (CME) acknowledges the release of the Cook Government’s Plan for Affordable Energy and welcomes its focus on containing electricity prices for WA businesses.
CME Chief Executive Officer Aaron Morey said putting affordability at the centre of energy policy was an important step towards improving the State’s investment attractiveness and ability to sustain and grow its industrial base.
“The Cook Government understands that its Made in WA ambitions hinge on competitively priced electrons,” Mr Morey said.
“Without action, the Government’s own modelling has industrial power prices rising 89 per cent by 2032.
“This Plan holds them at around $200 a megawatt hour. Holding prices steady stops the damage getting worse.
“But at roughly twice the price our members say they need, WA will struggle to attract new processing and manufacturing industries or keep the ones it already has.”
Mr Morey said rising electricity costs were already threatening the viability of some operations on the South West Interconnected System.
“Industry understands the transition takes time and money. But some businesses can’t wait until 2032 for competitive power,” Mr Morey said.
“Targeted support will be needed to keep energy-intensive operations running through the transition, as CME called for in its State Pre-Budget Submission.
“Beyond that, the goal must be power prices that let WA businesses compete globally.
Mr Morey said achieving the Plan’s 75 per cent renewable energy target would depend on transmission lines and new generation arriving on time.
“The cost of keeping the system reliable can rise quickly as renewables take a bigger share, with more storage, firming and stabilisation investment needed,” Mr Morey said.
“If costs climb faster than expected, the Government should be willing to adjust both the timing and the target in order to prioritise affordability.”
Mr Morey welcomed the Plan’s recognition of the enduring role of gas and the Government’s commitment to protecting WA from the Commonwealth’s proposed national reservation scheme.
“WA’s domestic gas reservation policy has delivered stable gas prices, well below the east coast, for 20 years,” Mr Morey said.
“Gas-fired generation is the natural partner for renewables and batteries, and gas is a critical feedstock for fertiliser and critical minerals processing, both important growth opportunities for WA.
“CME will keep working with the Government to secure an enduring WA carve-out from the Commonwealth scheme, and on the WA Gas Security Strategy.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382