WA MARKET UPDATE
Electricity Prices
Western Australia has seen distinct market behaviour in March as the South West Interconnected System (SWIS) transitions from summer into early autumn. Daytime demand has eased slightly with milder weather, but the interplay between strong rooftop solar output, limited large‑scale renewables, and elevated cooling demand has shaped pricing patterns across the state.
The key theme this month has been how solar generation, evening peaks and system constraints interact, particularly as daylight hours shorten and the system pivots to more dispatchable generation.
Solar Output and Daytime Pricing
Strong rooftop solar in March has continued to keep daytime wholesale prices relatively low during late morning through mid‑afternoon. For many intervals on 4–6 March and 15–17 March, midday pricing was consistently lower than later in the day, reinforcing the structural benefit of load shifting for eligible businesses.'
Businesses that have shifted energy‑intensive activities into these solar‑rich intervals have seen measurable cost savings during March.
Evening Peaks and System Dynamics
As solar output drops in the late afternoon, SWIS continues to rely more on gas and thermal generation, which has driven noticeable evening price peaks throughout March, particularly between 5 pm and 9 pm.
Several dynamics have contributed to elevated evening pricing:
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Higher cooling and auxiliary demand during warm March evenings
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Limited large‑scale wind generation compared with eastern states
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Constraints on interconnection and local dispatch flexibility
While these peaks have generally been brief, they remain material for businesses exposed to peak intervals, especially those that cannot shift load away from late‑day hours.
Futures Pricing
Forward electricity prices in WA have stabilised through March after softer pricing toward the end of 2025. Pricing for the second half of 2026 is now relatively steady, suggesting the market has found a short‑term base as summer demand declines.
However, March typically signals the beginning of seasonal upward price pressure as:
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Daylight hours shorten and solar contribution tapers
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Scheduled maintenance on generation assets increases
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Reserve margins tighten ahead of winter
what it means for your business
March highlights that daytime solar continues to provide cost opportunities, with several mid-day intervals offering much lower pricing than evening periods. Peak exposure remains during late afternoon and early evening, particularly on warmer days in Perth and regional SWIS zones, when gas-fired generation sets prices.
Businesses that align high-load operations with mid-day solar availability or use battery storage and demand response strategies can capture savings and reduce their risk of higher evening costs as WA transitions into cooler months.
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.
In March, the Government of Western Australia introduced the Made in WA Energy Affordability Investment Program (MEAIP), a $153.3 million initiative designed to support large industrial and manufacturing businesses in reducing energy costs and improving efficiency.
The program provides low-interest loans and financial support to help businesses invest in energy-related upgrades, with a strong focus on reducing long-term operating costs and improving competitiveness. This reflects a broader policy shift toward supporting industry through electrification, efficiency, and on-site energy solutions, rather than relying solely on wholesale market pricing.
The program is designed to support investments in:
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Energy efficiency upgrades to reduce overall consumption and operating costs
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On-site generation and battery storage, helping businesses manage peak demand and price exposure
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Electrification of processes, reducing reliance on gas and improving long-term cost stability
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Advanced manufacturing technologies that lower energy intensity
what this means for businesses
This represents a direct opportunity to reduce energy spend while also improving resilience to market volatility. By lowering upfront capital barriers, the program enables businesses to take greater control over their energy strategy and reduce reliance on external supply. It also signals a clear policy direction in WA toward self-generation, demand-side optimisation, and long-term cost management, which may become increasingly important as the energy system evolves.
WA Gas Supply Outlook Remains Stable
In March 2026, reports confirmed that Woodside Energy reached an agreement with the Government of Western Australia to increase gas supply to the local market as part of an expansion to its LNG export operations. The deal will see additional gas made available to WA users over the coming years, helping to support ongoing demand from industry.
This sits within WA’s long-standing domestic gas policy, which requires a portion of gas production to be reserved for local use. As a result, WA continues to have a more stable and predictable gas market compared to the east coast, where supply shortages and price volatility have been more common.
what this means for businesses
For large energy users, this is important because:
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More gas supply locally helps support availability for industrial operations
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WA’s policy framework continues to limit extreme price volatility
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Long-term supply agreements provide better visibility for planning and budgeting
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Gas remains critical for electricity generation and industrial processes, especially where electrification is not yet viable
Fuel Supply Concerns Highlight Energy Security Risks
In March 2026, fuel supply became a key issue in Western Australia, with concerns raised about diesel availability, particularly for mining operations and regional industries. The WA Government called for greater access to the national fuel reserve, highlighting the state’s reliance on diesel to support off-grid operations, transport, and backup power systems. Unlike the east coast, many large WA energy users operate in remote areas where grid access is limited, making diesel a critical part of day-to-day operations and energy security.
These concerns reinforce that, despite the growth in renewables, traditional fuel sources remain essential for maintaining operational continuity in WA. Any disruption to diesel supply, whether due to logistics, refining constraints, or national stockpile limitations, can have immediate impacts on production, costs, and reliability.
what this means for businesses
This highlights several key risks and considerations:
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Reliance on diesel in remote operations means supply disruptions can directly impact output
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The need for fuel storage and contingency planning is becoming more important
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Businesses may need to consider diversifying energy sources, including hybrid systems with solar and battery storage
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Ongoing supply pressure can lead to cost volatility, particularly in regional areas
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Energy security is not just about electricity, fuel supply remains a critical risk factor