Mystery client drives plans for WA’s biggest gas power station amid green push

An energy giant has revealed plans to build the state’s biggest ever gas-fired power station on the same day the WA government declared it wants to boost renewables on the South West power grid from 40 to 75 per cent.

The doubling of green power is expected to occur over the next five years, mostly powered by upcoming major wind projects, backed by gas, to keep the system reliable and affordable.

It comes as APA revealed its plans to build the Keralup Energy Hub in Keralup, 53 kilometres south of Perth.

The 870-megawatt, gas-fired power station will split into a 210 megawatt temporary facility for one client, and a 660 megawatt facility to power a large grid-scale battery system.

The temporary facility will run from 2027 for three to five years, although the mystery ‘industrial client’ recipient of the power is yet to be revealed.

“While the longer-term goal is to establish a grid connection...there is an expected immediate need for reliable power before grid connection can be established,” APA stated in documents submitted to the Environmental Protection Authority.

“As such, the proposal is designed to support rapid growth from 200 megawatts in 2027 to up to 520 megawatts, while initially operating as an islanded power system.”

The proposed power plant may also require energy boffins to rethink their expected gas use calculations over the near term.

According to APA documents the new power station will burn through about 150 terajoules per day, which is about 10 per cent of the state’s current daily use.

The announcement of the proposed gas station comes on the same day Premier Roger Cook released the government’s long-awaited renewable energy target for the South West electricity grid, known as the South West Interconnected System.

Cook has a self-imposed target of 2030 to shut down state-owned coal-fired power stations in Collie and has been racing against time to support the new renewable energy projects and build billions of dollars worth of new poles and wires to connect them to the grid.

Chamber of Minerals and Energy WA chief executive said the state government needed to address the rising cost of industrial power prices, and if that couldn’t be achieved, it should adjust its new 75 per cent renewable target.

“The cost of keeping the system reliable can rise quickly as renewables take a bigger share, with more storage, firming and stabilisation investment needed,” he said.

“If costs climb faster than expected, the government should be willing to adjust both the timing and the target in order to prioritise affordability.”

Solutions for Climate WA Director Jess Panegyres welcomed the new renewables target.

“Today’s announcement makes it clear that the future of our electricity system is renewables,” she said.

“This is a win for the community and electricity consumers, and is an important step forward for WA’s clean energy transition and action on climate change.”

“Renewable energy is incredibly popular with WA households. A Renewable Energy Target is a step towards safer, cheaper energy for Western Australians.

“A Renewable Energy Target sends an important signal to the businesses, investors, workers and communities who will deliver WA’s next generation of energy infrastructure.”

Hamish Hastie is WAtoday's state political reporter and the winner of five WA Media Awards, including the 2023 Beck Prize for best political journalism.Connect via X or email.