Pilbara energy transmission and storage infrastructure
There is limited connectivity and storage across the energy system in the Pilbara. This results in individual mines or other users requiring their own generation, leading to inefficient outcomes including higher energy costs and emissions due to excess generation capacity, and smaller scale, fragmented generation.
The lack of electricity transmission infrastructure inhibits the use of renewable energy and may constrain investment because of capital costs associated with energy infrastructure.
The proposal could support emerging industries, such as clean hydrogen and ammonia, that offer new export opportunities to diversify WA’s economy (for example, through the production of green steel and low emission minerals processing).
Strategic Fit
The proposal aims to establish electricity transmission and storage infrastructure in southeast Pilbara that connects energy generation and users under one interconnected system. The 2019 Australian Infrastructure Audit noted that transmission networks need to respond to new generation in areas not currently served or without sufficient spare capacity.
This proposal is strongly aligned to the National Hydrogen Strategy and Pilbara Clean Hydrogen Hubs proposal, as well as state priorities including the WA Climate Action Policy and Targeted Diversification Strategy (Diversify WA).
Societal Impact
More connected generation and storage could create a more economically efficient, lower cost grid, and the opportunity for renewable generation to be used by multiple industrial users – helping to decarbonise industrial and mining operations.
Deliverability
Mechanisms to deliver improved energy connectivity in the Pilbara have been identified by both government and the private sector. A key issue will be advancing the possible solutions between government and the private sectors without duplicating expenditure. Options for energy storage may also be able to address identified problems.
The proponent should consider the alignment of private and government-led solutions as options for addressing the problem are developed.
Challenges to fully realising the economic opportunities identified by the proposal include port upgrades, development of Carbon Capture and Storage (CCS), and hydrogen infrastructure.
Proponent to identify and analyse potential investment options (Stage 2 of Infrastructure Australia’s Assessment Framework).
The WA Government is examining options including the new East Pilbara Link Project and North West interconnected system upgrades. Options should include both energy transmission and storage (for example batteries).
Refer to Infrastructure Glossary for terms and definitions.