New gas fired power station investigated by State Government

The State Government is in advanced planning to build a new gas-fired power station in WA as it prepares to switch off coal in three years’ time.

The Sunday Times understands Synergy is preparing a business case to either build and operate a gas-fired power station to supply the State’s main grid, or purchase electricity generated by a gas-fired power station from a private operator under a supply agreement.

The business case is expected to be completed by the end of this year.

Although no final decisions have been made, it’s understood a new Government-owned gas-fired power station would be about 300 megawatts and cost hundreds of millions of dollars to build. It would be ready for when the last of WA’s coal-fired power stations close at Muja, near Collie, about 2029.

Energy Minister Amber-Jade Sanderson declined to comment on the possibility of a new Government-owned, gas-fired power station when questioned by The Sunday Times this week.

But in an interview last year with The Sunday Times, Ms Sanderson was open about gas, regardless of renewables, continuing to play a role in WA’s energy needs.

Premier Roger Cook has also been clear that while Government-owned coal-fired power generators would be phased out by 2029, gas would still be needed to keep the lights on in WA.

“Gas is going to be needed for security and reliability in the system going forward up to 2030 and beyond,” Ms Sanderson said last year.

“We are not ruling anything in or out at the moment. We are looking actively at what’s available, including gas.”

Although Ms Sanderson is still fully committed to shutting down State Government-owned coal-fired power stations by 2029, in a radio interview this week she appeared to leave the door open to extending the life of coal if needed.

Ahead of last year’s election, Opposition energy spokesman Steve Thomas claimed WA would need a 300mw gas-fired power station if the Cook Government was shutting down coal.

Dr Thomas also believed the life of coal should be extended as WA moves to renewables.

“Despite proMising to build 810mw of new renewable generation during the 2022 to 2029 transition, they are only on track to deliver half of that amount,” he said on Saturday.

“And they are undermining private sector renewable projects by taking a measly 108mw of offtake contracts over the last five years as they closed 430mw of coal capacity.

“Thankfully the private sector is now stepping up on gas, with 650mw of new peak gas generation in planning, which might yet save the Government’s bacon.

“The next step we need is to ensure that there will be enough domestic gas available to feed those generators that will keep the lights on until the long-term energy transition can be completed.”

Dr Thomas said WA could not turn its back on gas generation.

“WA’s energy grid desperately needs more gas generation if we want to keep the lights on and air conditioners working during the currently stalling energy transition,” Dr Thomas said.

“This was so obvious that in 2024 I wrote the Opposition’s energy policy with a commitment to add 300mw of gas generation after the 2025 election.

“That policy also contained a commitment to extend the life of coal generation until the extra gas power was ready, and that gas would be the transition fuel to a lower emissions future.”