Local Developer Pitches Gigawatt-Hour Big Battery to Help Perth Quit Coal

Why It Matters

The battery provides critical firming capacity as WA phases out coal, helping maintain grid reliability while unlocking new revenue streams under the revised capacity market. Its timely deployment supports the state’s 2030 clean‑energy target and signals growing commercial viability for large‑scale storage in Australia.

Key Takeaways

• $500M 250 MW, 1 GWh battery proposed near Perth.
• Part of 18 storage projects along 330 kV line.
• Supports WA’s coal retirements by 2030.
• Capacity payments rising to $491,700/MW from 2028/29.
• Operational target set for 2029.

Pulse Analysis

Western Australia is accelerating its shift away from coal, with the state‑owned Collie A plant scheduled for closure in 2027 and the Muja 7 and 8 units set to retire by 2029. To fill the resulting gap in steady, dispatchable power, RE Developments has proposed a 250 MW, 1 GWh lithium‑ion battery in Baldavis. Positioned along the 330‑kV line that carries electricity from the Collie hub to Perth, the facility will act as a virtual power plant, delivering up to six hours of storage and providing rapid response to fluctuations in demand and renewable output.

The economic case for such a project has been bolstered by the Economic Regulation Authority’s recent recommendation to raise capacity payments for six‑hour batteries to $491,700 per megawatt beginning in the 2028/29 financial year. This represents a 36 % jump from the current rate and aligns battery remuneration with that of gas generators, creating a more level playing field. The higher payments supply a predictable revenue stream that can offset capital costs, making the $500 million investment more attractive to financiers and encouraging further private‑sector participation in WA’s storage market.

Beyond meeting immediate reliability needs, the Baldavis battery illustrates how large‑scale storage can become a cornerstone of Australia’s broader energy transition. By delivering firm capacity, reducing reliance on fossil‑fuel peakers, and smoothing the integration of wind and solar, such installations support the state’s 2030 emissions goals and set a template for other regions facing similar coal retirements. As capacity markets evolve and technology costs continue to fall, we can expect a cascade of gigawatt‑hour projects that not only secure grid stability but also open new avenues for revenue through ancillary services and energy arbitrage.