Pacific Energy and Horizon Power have signed a 20-year power purchase agreement (PPA) to provide electricity to the coastal Gascoyne community as part of efforts to decarbonise one of Western Australia’s key tourist destinations.
Under the agreement, Horizon Power will provide power to Exmouth with a mix of large-scale and rooftop solar, battery storage, and, only when needed, gas-fired generation.
The agreement will involve construction of a 9.6MW solar farm and two batteries with a combined 10MW/49.6MWh capacity adjacent to the existing Exmouth Power Station.
As a result, Exmouth is expected to have up to 80 per cent of its power needs met by renewable energy as soon as 2026, with construction of the new solar facilities due to commence in mid-2025.
The hybrid system will be Pacific Energy’s first off-grid power project to supply such a significant portion of a remote town’s annual power requirements using solar energy and battery energy storage.
The Western Australian Government said that the agreement’s signing is the latest step it has taken to decarbonise regional Western Australia, following the recent announcement of plans to build transmission on the Burrup Peninsula that can connect industry with emerging renewable energy developments in the Pilbara.
Western Australian Premier, Roger Cook, said that the project will see Exmouth become a hub for renewable energy, furthering the State Government’s goal of decarbonising regional centres around the state.
“As we transition to renewables, projects like this will unlock job-creating opportunities and diversify regional economies,” Mr Cook said.
“My government is committed to transforming Western Australia into a global clean energy powerhouse, providing clean energy for generations to come.”
Western Australian Energy Minister, Reece Whitby, said that the PPA is an exciting step in Western Australia’s energy transition that will ensure Exmouth has clean, reliable and affordable energy into the future.
“Not only will construction of a new solar farm and two batteries create local jobs, but it will also directly lead to lower emissions and put regional communities at the forefront of leading our state’s decarbonisation.
“In combination with our efforts to decarbonise the Burrup, the State Government is showing it is serious about ensuring regional communities are at the forefront of the energy transition.”
Pacific Energy COO, Mike Hall, said that this outcome has been driven by the Exmouth community’s desire for a clean energy solution that will help them protect their UNESCO World Heritage Site, and Horizon Power’s commitment to delivering cleaner energy solutions to Western Australia’s regional areas.
“It was incumbent on us to demonstrate exactly what an 80 per cent renewable solution would look like, and how we could integrate various technologies into the existing infrastructure to give the town the reliable, decarbonised power system it needs,” Mr Hall said.
“There was a strong community desire to see gas transport movements through town reduced, which we’ll achieve by offsetting gas reliance with solar generation and energy shifting storage.
“This is another important project for Australia’s energy transition, because it demonstrates what can be achieved when we set ambitious targets that align with community expectations.”
Mr Hall said that Pacific Energy is proud to build on the work it has already delivered for Horizon Power and the people of Western Australia to transition them to a clean energy future without affecting the safe, reliable and essential delivery of power.”
Horizon Power CEO, Stephanie Unwin, said that the future of energy is rapidly evolving, and Horizon Power is committed to exploring ways to support increased levels of renewable energy across Western Australia’s regions.
“We are proud to be delivering innovative projects such as the new energy system in Exmouth, which will support a clean energy future, with safe, reliable power, for regional Western Australians.”
Ms Unwin said that the Exmouth Energy Project is an exciting project that will reduce costs and carbon emissions, while supporting the town’s desire for a clean energy future.
“Engagement with communities is extremely crucial in our ability to deliver major power infrastructure and customer products, which are aligned with the unique characteristics and interests of every community.
“The feedback, insights and lessons we have learnt from the community through this project, have been invaluable to our understanding of Exmouth’s future energy system requirements,” Ms Unwin said.
“We look forward to continuing collaborating with the Exmouth community to best support their future energy needs.”
About the hybrid system
Pacific Energy’s solution includes an energy shifting BESS (battery energy storage system) that will power the town with renewable energy even when the sun goes down.
Exmouth is located in a cyclonic wind region, which means wind power was not an option for this project.
Instead, Pacific Energy has incorporated a sophisticated industrial battery that has been carefully designed to get the most out of the solar energy penetration. The BESS also meets Horizon Power’s fault current contribution requirements, which means the system will be able to operate hydrocarbons-off (or gas-free) for prolonged periods.
Together, the solar and BESS are expected to offset nearly 14,000t of carbon emissions annually over the life of the 20-year PPA.
Pacific Energy took ownership of Exmouth’s existing gas fired power station in mid-September 2024. Work is due to start on the renewables integration in early 2025, with the new system expected to be fully operational by the end of 2026.
Featured image: Horizon Power.
