The Australian Energy Market Operator (AEMO) has released its 2025 Wholesale Electricity Market (WEM) Electricity Statement of Opportunities, highlighting the urgent need for major investment in Western Australia’s power system to avoid future electricity shortfalls.
Despite recent progress — including over 500 MW of battery storage now online and another 728 MW expected by 2025-26 — AEMO forecasts a shortfall of 50 MW by summer 2025-26, ballooning to 932 MW by 2027-28 without further action. This comes as 1,700 MW of coal and gas generation is expected to retire by 2032, including Synergy’s Collie and Muja power stations and privately-owned Bluewaters.
Current grid-scale batteries, mostly by Synergy and Neoen, provide up to four hours of power. AEMO stresses the need for longer-duration batteries (six hours or more) and new energy-producing infrastructure, such as solar, wind, or gas generation, to manage growing peak demand and extended evening usage.
Additionally, transmission network upgrades are vital. AEMO warns that the integration of renewables and storage into the South West Interconnected System (SWIS) is at risk without timely expansion of Western Power’s infrastructure.
While a pipeline of over 1,600 MW in committed and probable projects exists, many developments are in early stages. The report underscores the need for coordinated and accelerated investment to ensure future grid reliability and system stability.
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