The Australian state of Western Australia will need 40.5 GW of renewable generation and 125 GWh of energy storage by 2035, according to a new report from independent think tank Beyond Zero Emissions (BZE), which says shared infrastructure is not keeping pace with the state’s clean energy ambitions.
The report finds that only 8% of the generation capacity and 11% of storage needed in the South West Interconnected System (SWIS) is currently under construction. In the North West Interconnected System (NWIS), the figures are 9% and 2%, respectively.
BZE identifies a lack of mandatory rules for community engagement and benefit sharing, as well as insufficient support for existing industries to decarbonize, among the barriers to meeting the targets.
It calls on the Western Australian government to establish clear emissions reduction targets, provide existing industries with the same support as emerging clean industries, and strengthen community engagement and benefit sharing.
Remote locations: Kwinana and Port Hedland
The report assesses Kwinana and Port Hedland against the National Action Plan, examining industrial decarbonization, enabling infrastructure, social license, and policy and governance. It identifies gaps between policy ambitions and delivery.
BZE Chief Researcher Matt McKee said the two regions have the workforce, ports, and renewable energy resources needed to develop globally competitive clean industries.
He said transmission construction is not keeping pace with demand, putting jobs and investment at risk.
Clean Energy Link (CEL)-North is under construction, but two contracted wind farms will use nearly three-quarters of its new capacity.
The grid could become a constraint if CEL-East and further SWIS upgrades do not accelerate.
Kwinana’s industrial base is worth AUD 15.7 billion ($11.2 billion) annually but is contracting faster than new clean energy projects are arriving, according to the report.
In Port Hedland, shared transmission infrastructure could help unlock the Pilbara’s share of a national green iron export opportunity worth up to AUD 386 billion annually by 2060, about three times the current value of iron ore exports.
The report says Australia’s green exports could be worth AUD 333 billion annually by 2050, building on the Pilbara’s existing role in supplying more than 90% of the country’s iron ore exports.
McKee said Western Australia needs pathways for existing industries to decarbonize, while investors need certainty and communities need to share in the benefits of new projects.
BZE calls on the Western Australian government to deliver CEL-North on schedule, accelerate the next SWIS transmission projects, and establish firm delivery timelines for the Pilbara Energy Transition Plan.
The report, Powering Up Western Australia, also recommends legislated climate and renewable energy targets, statewide community benefit-sharing, independent oversight of renewable energy delivery, and a Commonwealth agreement to support NWIS investment.
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