WA MARKET UPDATE
Electricity market conditions in Western Australia remain relatively stable through June, with wholesale pricing continuing to reflect a broadly balanced supply-and-demand environment. The market is being supported by strong local gas availability, steady system capacity, and growing contributions from renewable generation, particularly rooftop and utility-scale solar.
While overall price levels remain moderate compared to recent volatility cycles, seasonal conditions are starting to have a greater influence on short-term movements. As winter progresses, increased heating demand is lifting consumption during morning and evening peak periods, while reduced daytime solar output is shifting more reliance onto firming generation. This is creating more noticeable intraday price variation, even though underlying market conditions remain generally stable.
Key Market Drivers
Current WA electricity pricing is being influenced by several key factors:
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Strong domestic gas supply continues to underpin system stability and price moderation
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Increasing solar penetration is contributing to lower daytime grid demand
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Winter heating demand is lifting consumption during morning and evening peaks
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Coal and gas generation remain critical for system reliability during peak periods
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Gradual renewable expansion is reshaping long-term supply dynamics
Pricing Outlook
Forward pricing remains relatively stable, with WA continuing to experience a more predictable pricing profile compared to more volatile markets.
However, as winter continues:
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Morning and evening peak demand is expected to increase
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Rooftop solar will continue to suppress daytime grid demand
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Gas-fired generation will remain the key marginal price setter during peak periods
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Short periods of tighter supply may emerge during low renewable output days
Overall, pricing direction remains steady, but seasonal demand patterns are creating more pronounced intraday movements.
Supply Outlook – Generation & System Conditions
Electricity supply conditions in Western Australia during June remained broadly stable, with a small number of operational and system events contributing to short-term price and supply variability.
Key events:
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Periodic reduced wind output across parts of the SWIS during evening peak periods, increasing reliance on gas-fired generation
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Several instances of high rooftop solar output during daytime hours, contributing to suppressed grid demand and low price intervals
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Short-duration evening peak tightening events, driven by higher heating demand and reduced solar availability
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Occasional gas unit ramping events, required to support rapid demand increases during peak periods
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Minor transmission congestion in parts of the SWIS network, limiting efficient dispatch of generation during high demand windows
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Isolated periods of lower-than-forecast renewable output, requiring increased dispatch of flexible thermal generation
What it means for your business
With relatively stable wholesale conditions, WA businesses continue to benefit from a more predictable pricing environment.
However, seasonal demand shifts and ongoing market transition mean:
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Procurement timing still plays an important role in contract outcomes
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Peak usage periods remain the main driver of electricity costs
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Efficiency and demand management can materially reduce exposure
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Contract structure remains important in managing overall cost risk
For businesses without an active energy strategy review, now remains a sensible time to assess positioning ahead of winter demand peaks and potential tightening in peak pricing conditions.
Electricity prices in Western Australia are set to change from 1 July, reflecting annual adjustments to regulated tariffs and underlying cost components. The update primarily affects residential and small business customers on standard tariffs, with changes driven by shifts in generation costs, network charges, and government policy settings.
While price movements vary depending on tariff type and consumption profile, the adjustments form part of the state’s regular pricing review process rather than a structural market reform. Larger commercial customers on negotiated contracts are generally not directly impacted, though broader cost trends can still influence future contract pricing.
Key elements of the July 1 changes:
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Updated regulated electricity prices effective 1 July
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Impacts mainly residential and small business customers on standard tariffs
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Reflects changes in generation, network, and retail cost components
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Part of WA’s annual tariff adjustment process
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Limited direct impact on large commercial contract customers
what this means for businesses
The 1 July electricity price changes in Western Australia reflect routine tariff updates for regulated customers. While the impact is most direct for households and small businesses, the changes also provide a useful indicator of underlying cost trends in the state’s electricity system.
Businesses on market contracts should continue to focus on procurement timing, network tariff structure, and consumption profile, as these factors typically have a greater impact on total energy costs than regulated price changes.
Goldfields grid reliability project moves to Stage Two tenders
Stage Two tenders have opened for the Goldfields grid reliability program in Western Australia, marking the next phase in efforts to strengthen electricity supply resilience across the region. The program is focused on improving system stability and reducing the risk of outages in one of the state’s more remote and demand-sensitive networks.
The project is part of a broader push to upgrade transmission and local generation support in regional Western Australia, where long distances, constrained network capacity, and exposure to localised demand spikes can create reliability challenges. Stage Two is expected to progress detailed procurement for infrastructure and system support solutions.
Key elements of the Stage Two tender:
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Opening of Stage Two tenders for Goldfields grid reliability program
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Focus on improving electricity supply reliability in regional WA
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Targeting upgrades to network resilience and system stability
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Supports management of peak demand and outage risk in remote areas
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Part of broader regional energy infrastructure investment pipeline
What this means
The progression to Stage Two tenders for the Goldfields grid reliability program highlights ongoing investment in strengthening Western Australia’s regional electricity networks. The focus remains on improving reliability and system resilience in remote areas where supply conditions can be more constrained.
Ten major wind and battery projects proposed in Western Australia
A pipeline of 10 large-scale wind and battery projects has been proposed in Western Australia, signalling continued expansion of renewable generation and storage capacity across the state. The projects form part of a broader shift toward increasing renewable penetration while strengthening system reliability through large-scale energy storage.
The proposed developments combine wind generation with battery storage to improve the ability of the system to manage variability in supply and support peak demand periods. This hybrid approach is increasingly being used to help stabilise the grid as coal generation retires and more intermittent renewable energy comes online.
Key elements of the pipeline:
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Proposal for 10 major wind and battery projects in Western Australia
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Combination of renewable generation and large-scale storage
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Supports grid stability and peak demand management
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Aims to improve integration of variable renewable energy
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Part of broader state energy transition and investment pipeline
What this means
The expansion of wind and battery capacity supports a longer-term shift toward more renewable-heavy supply conditions. Increased storage capacity can help smooth price volatility by shifting excess generation into peak demand periods, although short-term pricing will still be influenced by weather, demand, and system constraints.
For large commercial and industrial users, these developments are more relevant to long-term market conditions rather than immediate pricing changes, but they strengthen the overall outlook for increased renewable supply and system flexibility over time.