WA Coal phase-out
Read the full article by Daniel Mercer here
Key Points
Transmission Grid Plan Announced, But No New Funding
The WA government has unveiled a blueprint to build new and upgraded transmission lines across the South West Interconnected System (SWIS). This is intended to enable more wind, solar and battery projects to connect, with the aim of eventually phasing out coal-fired power.
However, despite the ambitious language, the announcement came with no new financial commitment.
Bluewaters Coal Plant Reinstated to Capacity Market
Contrary to earlier assumptions by the Australian Energy Market Operator (AEMO) that Bluewaters would be unavailable after 2027–28 (largely because its coal supply contract via Griffin Coal was assumed to end in mid-2026), Bluewaters has now been restored to eligibility for WA’s capacity market.
This reversal creates doubt about whether coal can really be phased out by the end of the decade.
Government’s Coal Phase-out Timeline in Question
WA Labor previously committed to closing its state-owned coal plants (Muja and Collie) by 2029, and suggested phasing out coal altogether by 2030.
The article implies that given the reinstatement of Bluewaters, plus lack of clarity on funding and generation to replace coal, a full exit from coal by 2030 is looking increasingly unlikely.
Criticism from Opposition and Greens
The WA Greens leader, Brad Pettitt, said the plan gives very little certainty. He noted that there are almost no large-scale wind or solar projects under construction, so it seems unlikely there will be sufficient renewable capacity to close coal by 2030.
Opposition energy spokesperson Steve Thomas was more blunt, saying that the government is starting “way behind the eight ball”, particularly in transmission planning, which he says should have begun years ago.
Bluewaters’ Importance & Unanswered Questions
Bluewaters provides about 10-15% of WA’s electricity supply per year.
AEMO’s earlier assumption that Bluewaters would be excluded from the capacity market post-2027-28 was based in part on the outlook for Griffin Coal’s subsidy scheme ending, and concern over coal supply.
But now, with Bluewaters certified for the capacity market for that period, that raises questions about how AEMO judged its future reliability and coal-supply risks.
Implications
The government’s rhetoric about phasing out coal by 2030 is under serious risk due to unresolved issues: funding, transmission infrastructure, renewable generation scale-up, and the viability of coal supply for Bluewaters.
Bluewaters remaining eligible for capacity payments signals that coal may continue to play a role in WA’s energy mix well beyond earlier assumptions.Coal phase-out