WA MARKET UPDATE
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Electricity Prices
In February 2026, we observed that Western Australia’s electricity market remained broadly stable, with strong rooftop and utility-scale solar continuing to suppress daytime pricing across the South West Interconnected System (SWIS). Milder late-summer conditions helped moderate overall demand, although hotter days toward the end of the month placed some upward pressure on late-afternoon and evening intervals.
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Evening periods remained the most sensitive part of the daily cycle. As solar output tapered, the system relied more heavily on gas-fired generation and available coal capacity, leading to firmer pricing during peak demand windows. Network constraints in parts of Perth and regional areas intermittently contributed to localised price pressure, reinforcing the importance of generation availability and transmission capacity during high-demand periods.
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Forward pricing through February reflected continued market stability, with only modest movements compared with earlier in summer. While daytime pricing remains supported by strong renewable output, evening peak contracts continue to carry a premium due to variability in wind generation and the need for thermal firming.
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Generation Mix
Electricity supply in February remained balanced across gas, coal, wind, and solar. Rooftop solar continued to play a dominant role during daylight hours, materially reducing midday demand on thermal generation and keeping pricing contained.
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Key dynamics influencing February market behaviour included:
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Muja Power Station (Collie): Maintenance activities continued to limit available coal capacity at times, tightening evening supply margins.
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Gas generation (Pinjar and Kwinana): Provided critical firming support during low-solar periods, with fuel input costs influencing peak pricing.
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Wind variability: Intermittent lower wind output contributed to firmer pricing in some evening intervals.
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Battery storage (Collie and Kwinana): Storage assets discharged into peak periods, supporting reliability and moderating extreme price movements.
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Futures Pricing
We observed that forward electricity pricing remained relatively steady through February, reflecting balanced supply conditions and consistent renewable output. While the broader risk profile remains manageable, evening peak exposure continues to attract a premium due to residual volatility linked to wind variability and thermal availability.
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what it means for your business
February highlighted a continued shift in Western Australia’s market behaviour as we move further into 2026. The most important insight this month is that price risk is becoming increasingly interval-specific rather than demand-driven. Rather than large system-wide price movements, we saw tighter supply conditions emerge during shorter evening windows when renewable output declined and demand remained elevated.
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We observed that businesses with consistent daytime operations benefited from the sustained strength of rooftop and utility-scale solar output across the SWIS. However, February also showed that price movements can occur quickly when wind generation fluctuates or when thermal assets are temporarily constrained. This creates a market environment where operational timing can have a material impact on energy costs, particularly for businesses with flexible production schedules.
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For commercial and industrial users, February reinforces the value of actively matching consumption to lower-cost supply periods. Businesses that can adjust processes, use storage solutions, or implement load management strategies are better positioned to avoid short-lived but costly price spikes during peak periods.
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If your business does not yet have a strategy in place, we can help. Contact us for a free bill check or to discuss a tailored energy procurement plan.
From 1 February 2026, new solar and battery compliance requirements come into effect across Western Australia, aimed at improving grid stability as renewable penetration continues to grow. These changes require newly installed or upgraded commercial and large residential solar and battery systems to meet updated technical standards, including enhanced inverter settings, export controls, and communication capabilities with the network.
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The updated rules are designed to give network operators greater visibility and control during periods of high renewable output or low demand, helping prevent system instability and local network constraints. For businesses, this means solar and battery systems must be correctly configured and compliant at the time of installation or upgrade, rather than being retrofitted later at additional cost.
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what this means for businesses
For commercial energy users, the changes reinforce the importance of getting system design right upfront. While the compliance requirements do not reduce a system’s ability to self-consume solar energy, they may limit exports during certain grid conditions. Businesses planning solar or battery investments should work closely with installers and energy advisors to ensure systems are compliant, future-proofed, and optimised to maximise onsite usage, cost savings, and return on investment under the new rules.
Major Gas Cost Increase Hits WA’s Largest Users
From 1 January 2026, the 33% increase in Dampier Bunbury Pipeline haulage tariffs raises the non-negotiable transport component of gas costs. Even if a business has locked in a competitive wholesale gas price, the delivered gas cost increases automatically, reducing the effectiveness of existing contracts and squeezing margins.
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For large and continuous gas users, such as mining operations, minerals processing, food manufacturing, chemicals, and gas-fired generation, this translates into immediate operating cost increases that cannot be avoided without changing how much gas is used or how it is sourced. In some cases, the higher haulage charges may push total gas costs above internal budget assumptions or contract forecasts made prior to 2026.
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Operationally, businesses may need to reassess production schedules, review gas pass-through clauses with customers, or accelerate efficiency and electrification plans to offset the increase. The change also raises the stakes for future gas contracting decisions, making location, transport distance, and flexibility in fuel choice far more important factors in managing energy costs going forward.​
Proposed Transmission Cost Allocation for New Generators
A public consultation on a proposed Fixed Capital Charge (FCC) closed on 23 January 2026, signalling a potential shift in how transmission infrastructure is funded. Under the proposal, new large-scale generators over 10 MW would contribute a one-off charge of $100,000 per MW toward transmission costs when connecting to the network.
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For large energy users, the proposed Fixed Capital Charge would not appear as a direct line item on your energy bill. However, it is likely to flow through indirectly via future wholesale prices and contract costs.
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By requiring new large generators to contribute $100,000 per MW towards transmission, some projects may factor this cost into their long-term pricing or delay investment altogether. This can influence the cost and availability of new supply, particularly for businesses seeking long-term power purchase agreements (PPAs).
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Over time, the model may deliver greater price stability and investment certainty, which helps reduce the risk of sudden network-related cost shocks. For large users, this reinforces the importance of active procurement strategies, including forward contracts, diversified supply, and onsite solutions such as solar, batteries, or demand response to manage exposure.