Frontier Energy Plans Major Solar Battery Hybrid Project in Western Australia
Frontier Energy has announced ambitious plans to significantly enhance its Waroona solar battery hybrid project located in Western Australia. This expansion aims to address the energy shortfall anticipated from the closure of the state’s last coal-fired power plants by the end of the decade.
The company is currently in the process of constructing the initial phase of the Waroona project, which features 120 megawatts (MW) of solar power alongside an 80 MW battery with a capacity of 360 megawatt hours (MWh). Frontier now intends to develop the project in stages, ultimately reaching a capacity of 1,000 MW of solar energy and up to 660 MW of battery storage, which is expected to provide around 2,500 MWh of energy storage.
Energy Transition in Western Australia
According to CEO Adam Kiley, Western Australia is experiencing a significant shift in its energy landscape, with plans to retire at least 1.3 gigawatts (GW) of outdated coal and gas generation assets by 2030. He stated, “Frontier’s Waroona Energy Park has the potential to play a major role in replacing this energy through our integrated solar/battery expansion strategy.”
The Waroona project is strategically located adjacent to an existing transmission line at the Landwehr Terminal, which is situated in a robust section of the grid. Kiley emphasised that Frontier’s approach does not rely on extensive grid expansion, which often incurs considerable time and costs for both the government and consumers.
Future of Coal Generation in WA
Western Australia, recognised as the largest isolated grid globally with no interconnections to other states or countries, is set to close its last state-owned coal generators by 2029. The state has recently proposed a significant new transmission line to facilitate the connection of new wind and solar initiatives.
Although the Waroona project faced some initial challenges, including missing out on early tenders from the state government and market operator, its construction prospects have improved. It has been selected as one of four projects to receive underwriting agreements in the inaugural dispatchable tender conducted by the federal government’s Capacity Investment Scheme.
Additionally, Waroona has been granted capacity credits within the Western Australian energy market, which the company estimates could generate approximately $31.8 million annually. This revenue will supplement income from energy sales.
Projected Earnings and Future Developments
The first phase of the Waroona project is anticipated to be operational by late 2027, contingent on securing the necessary financing. Frontier also plans to submit a similarly sized second phase for consideration in future rounds of the CIS tenders in Western Australia.
A presentation earlier this year indicated that the $285 million initial phase could yield annual pre-tax earnings of around $58 million from capacity credits and other revenue sources.
Western Australia is already home to the nation’s first large-scale DC-coupled solar-battery hybrid project located in Cunderdin. This facility stores solar energy generated on-site in its batteries, allowing it to avoid negative pricing during midday and supply power to the grid during peak evening hours, often extending until midnight when prices are higher.
Frontier Energy aims to implement a similar strategy for the Waroona project. Solar battery hybrids are increasingly seen as a viable alternative to large-scale wind projects due to their declining costs, shorter construction timelines, and fewer hurdles in securing planning approvals and community support.
