Frontier Energy has announced ambitious plans to expand its Waroona solar battery hybrid project in Western Australia. This initiative aims to replace the energy capacity lost with the anticipated closure of the state’s last coal-fired generators by the end of the decade. Currently, Frontier is constructing the first phase of the Waroona project, which features a capacity of 120 megawatts (MW) of solar power combined with an 80 MW, 360 megawatt-hour (MWh) battery storage system.
The company intends to develop the project in stages, ultimately increasing the capacity to a total of 1,000 MW of solar and up to 660 MW of battery storage, which would provide approximately 2,500 MWh of storage. According to CEO Adam Kiley, “Western Australia is undergoing a major energy transition, with the planned retirement of at least 1.3 GW of ageing coal and gas generation assets before 2030.” He emphasized that the Waroona Energy Park could significantly contribute to filling the energy gap through the integrated solar and battery expansion strategy.
Western Australia is unique as it hosts the largest isolated grid globally, with no connections to other states or countries. The state plans to retire its last coal generators in 2029, marking a significant shift in its energy landscape. To facilitate the transition, a new transmission line is being developed to connect emerging wind and solar projects.
The Waroona project, located approximately 120 kilometers south of Perth, faced initial challenges when it missed out on early state government tenders. However, its prospects have improved since it was selected as one of four projects awarded underwriting agreements in the first dispatchable tender under the federal government’s Capacity Investment Scheme. This recognition has positioned Waroona to receive capacity credits within the Western Australia energy market, which could be valued at $31.8 million annually. Revenue from energy sales will supplement this income, increasing the project’s financial viability.
The first stage of the Waroona project is slated for completion in late 2027, provided that Frontier secures adequate financing. The company also plans to propose a similarly sized second phase in future rounds of the Capacity Investment Scheme tenders in Western Australia. A presentation released earlier revealed that the initial $285 million investment could generate pre-tax earnings of around $58 million annually from capacity credits and other revenue sources.
Western Australia is already home to the country’s first large-scale DC-coupled solar-battery hybrid project in Cunderdin, which stores solar energy generated on-site. This project has successfully navigated the challenges of energy pricing by supplying power during peak demand periods, often extending into the late evening when prices are at their highest. Frontier Energy aims to implement a similar strategy for its Waroona project.
As the energy market evolves, solar battery hybrids are increasingly viewed as a viable alternative to large-scale wind projects. Their decreasing costs, shorter construction timelines, and fewer regulatory hurdles are significant advantages that position them favorably in the renewable energy landscape. Frontier Energy’s commitment to the Waroona project underscores the growing role of renewable energy in shaping Western Australia’s future energy supply.
