The WA Government has opened consultation on its proposed new funding model for transmission connections to the South West Interconnected System (SWIS), an important step towards providing industry with greater clarity over the costs of the energy transition.
The Chamber of Minerals and Energy WA (CME) looks forward to participating in the consultation, which will establish the fees payable by generators, storage providers and major electricity users requiring a SWIS connection of more than 10 megawatts.
CME is broadly supportive of the Fixed Capital Charge (FCC) proposal but remains concerned about the trajectory of transmission and total delivered electricity costs on the SWIS.
CME Chief Executive Officer Aaron Morey said expanding the SWIS transmission network was necessary to meet the State’s future electricity needs but stressed the importance of a low-cost rollout.
“It’s vital we maintain a laser focus on keeping the total delivered cost of energy as low as possible,” Mr Morey said.
“Access to internationally competitive electricity is one of the single most important factors in the ongoing viability of our existing industrial base, and just as pivotal to attracting new downstream processing and manufacturing to Western Australia.
“The release of the SWIS Transmission Plan helped inform the location and timing of new high voltage transmission lines. This consultation will help provide greater transparency over the costs to industry.”
Mr Morey said resources operations connecting to the SWIS understood the need to contribute a fair share for transmission connections but could not plan future investment without clarity over the costs.
“Every option must be explored to optimise grid design and minimise transmission costs to achieve the most affordable and reliable grid,” Mr Morey said.
“This includes actively facilitating behind the meter options, prioritising new generation projects that provide sufficient dispatchable power and minimise the overall transmission investment required, as well as minimising the capital and financing costs of transmission investment that is undertaken as part of a low-cost energy system.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382