Investment in renewable generation, battery storage and household energy resources has strengthened the near-term outlook for Western Australia’s main electricity network, with the Australian Energy Market Operator (AEMO) forecasting sufficient generation capacity through to 2028-29.
Published annually, AEMO’s 2026 Wholesale Electricity Market Electricity Statement of Opportunities assesses electricity supply and demand across the South West Interconnected System over the next decade. The report informs government and industry planning while identifying future investment requirements to maintain power system security.
Kirsten Rose, Executive General Manager Western Australia at AEMO, shared that the latest outlook marks an improvement on last year’s assessment.
“The near-term outlook for the South West Interconnected System has improved, and reliability targets are expected to be met over the next three years,” Rose said.
“This improved outlook has been largely driven by strong investment alongside government-led initiatives.”
The report forecasts more than 1,000 MW (megawatts) of new generation and energy storage capacity will be progressively delivered by 2030-31, with an even larger pipeline of projects under development.
Consumer energy resources are also expected to play an increasingly important role in supporting the grid. Continued uptake of rooftop solar and household batteries, supported by Commonwealth and Western Australian government programs, is forecast to reduce pressure on the system during peak demand periods.
“Consumer investment in rooftop solar and household batteries is playing an increasingly critical role in the power system,” Rose said.
“When coordinated to act as virtual power plants, household batteries provide material benefits by discharging into the grid over the evening peak – reducing peak demand by 200 MW in 2028-29.”
While the short-term outlook has strengthened, AEMO expects electricity demand across the South West Interconnected System to increase by more than 50 per cent over the next decade, as population growth continues and homes, businesses and industry increasingly electrify.
To meet that demand, additional investment will be required beyond the current development pipeline, particularly as ageing thermal power stations are progressively retired.
Rose said the market continued to attract significant investor interest, with more than 2000 MW of proposed projects submitting expressions of interest through the 2026 Reserve Capacity Cycle for delivery in 2028-29.
“The project pipeline is clearly strong, but it remains critical new generation and storage capacity is delivered on time, alongside planned transmission network augmentations,” Rose said.
For more information, visit the AEMO website.
