WA MARKET UPDATE
Electricity Prices
In August 2025, we saw wholesale electricity prices in Western Australia rise by approximately 3% compared to July. The rise in prices was influenced by several key factors. We observed that early morning and evening demand peaks placed additional stress on the South West Interconnected System (SWIS), despite generally strong rooftop solar generation during the day. Lower-than-expected output from some gas-fired peaking plants, combined with reduced battery discharge during periods of high demand, contributed to short-term supply tightness. Additionally, minor maintenance outages at key gas generators slightly constrained system flexibility, which amplified price fluctuations during peak periods.
Generation Mix
Western Australia continues to strengthen its generation mix, with several key developments:
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Renewables share: Around 33% of electricity generation now comes from rooftop solar and utility-scale wind and solar projects, with gas and coal providing backup during low renewable output.
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Infrastructure developments: We are seeing strong growth in battery storage, with approximately 500 MW online and another 728 MW committed. These developments improve reliability but grid constraints can still limit renewable delivery.
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Operational impact: During August, periods of low wind output and higher-than-average evening demand contributed to short-term price volatility.
Futures Pricing
We have observed that forward electricity prices for WA in August 2025 showed low to moderate volatility:
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Base month futures fluctuated by roughly ±5–7%, reflecting generally stable supply conditions.
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Evening peak prices spiked up to 110% above average, reflecting temporary reductions in renewable output or high demand.
what it means for your business
In Western Australia, we observe that energy costs are generally stable, supported by strong rooftop solar generation, growing battery storage, and periods of lower demand. However, minor spikes can occur during early morning and evening peaks, which can affect businesses with continuous or high-load operations. We assist in planning around these peaks, optimising solar and storage use, and developing procurement strategies that maintain cost predictability.
If your business does not yet have a strategy in place, we are here to help. Contact us for a free bill check or to discuss a tailored energy procurement plan.
In August, the WA Government reaffirmed PoweringWA’s role as the central vehicle for delivering renewable infrastructure upgrades across the South West Interconnected System (SWIS). A key priority is upgrading transformers and building new transmission lines to connect renewable projects into the grid more quickly.
For businesses, this means greater certainty around future access to affordable, clean energy and reduced exposure to volatile wholesale electricity prices that can spike when renewable output drops.
From a strategic standpoint, this accelerated rollout provides new opportunities for contractors, suppliers, and energy-intensive businesses looking to enter long-term renewable supply agreements. Businesses operating in industries like hospitality, retail, and resources can benefit from more stable energy supply, while those in construction, logistics, and technology have the potential to leverage direct opportunities in project delivery and supply chain participation.
Community Benefits Guideline Opens for Consultation
On 18 August 2025, the WA Government released a draft Community Benefits Guideline designed to ensure renewable energy projects deliver tangible benefits to the regions that host them. The draft outlines expectations for developers to provide outcomes such as improved local infrastructure, job creation, training opportunities, and support for regional businesses. While consultation closed on the same day, the move reflects a growing push to balance large-scale project development with the needs of local communities.
For businesses, this has dual implications. Developers and investors will need to factor in community contributions as part of project costs and planning approvals, creating opportunities for regional businesses to secure contracts in construction, services, and supply chains. At the same time, companies with a local presence may be better positioned to win tenders by demonstrating strong community links, potentially giving them a competitive edge in WA’s rapidly growing renewable sector.
Goldfields Regional Network (GRN) Moves Forward
The Goldfields Regional Network (GRN) investigation advanced in August, with the WA Government confirming ongoing work to design an electricity network that would provide low-emissions power to the resource-rich Goldfields region. This project aims to reduce reliance on expensive diesel and gas generation, enabling mining and processing businesses to cut costs and improve sustainability performance. For the mining sector, which faces increasing global pressure to decarbonise, the GRN could be a game-changer in maintaining competitiveness.
Businesses in related industries, such as engineering, transmission construction, and renewable generation, stand to benefit directly from new contracts and partnerships. Beyond the resource sector, improved grid stability and cleaner energy in the Goldfields may also attract new investment into regional WA, opening doors for service industries, local suppliers, and workforce expansion. For large energy users, the GRN promises not just cheaper electricity but also access to green power—essential for meeting ESG and export market requirements.
Cook Government to engage industry on future energy needs
Throughout August, the Cook Labor Government continued its intensive industry engagement process to help shape future energy policy and infrastructure development. Following the June announcement, consultations have focused on identifying priority transmission projects, market settings, and opportunities for co-investment. For businesses, this is a unique chance to directly influence decisions that will shape WA’s energy landscape for decades.
Active participation in these consultations can deliver significant strategic value. Large energy users, particularly in mining, manufacturing, and processing, have the opportunity to advocate for infrastructure that supports their operational needs. Meanwhile, businesses in construction, renewables, and technology can position themselves early for upcoming procurement and partnership opportunities. The government has made it clear that industry input will be a critical factor in determining the design and rollout of WA’s future grid, making August’s engagement a pivotal moment for business involvement.
