Full Breakdown
WA Approves Plans for Largest Gas-Fired Power Station as State Sets 75% Renewable Target
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APA Proposes Keralup Energy Hub
On October 27 2026, Australian Pipelines and Storage (APA) submitted a proposal to the Western Australian Environmental Protection Authority for the Keralup Energy Hub, a 870-megawatt gas-fired facility located 53 km south of Perth. The project will initially operate a 210-megawatt temporary plant for an undisclosed industrial client from 2027, expanding to a 660-megawatt unit that will supply a large grid-scale battery system. APA estimates the hub will consume roughly 150 terajoules of gas per day—about 10 percent of the state’s current daily usage.
Renewable Energy Target and Power-Price Modelling
The same day, Premier Roger Cook announced a renewable energy target for the South West Interconnected System, aiming to raise the share of renewables from 40 percent to 75 percent within five years, largely through new wind projects supported by gas-backed firming. Government modelling predicts the target will keep the average wholesale price per megawatt-hour stable at around $200 through 2032, whereas without additional measures the price could rise 89 percent to above $350 MWh. Energy Minister Amber-Jade Sanderson linked the projected increase to higher coal costs and the retirement of state-owned coal plants in Collie.
Official Government Position
Premier Cook set a self-imposed deadline of 2030 to close the Collie coal stations and pledged billions of dollars for new transmission infrastructure. The government also launched a $150 million energy-affordability program offering low-interest loans of up to $15 million for Western Australian manufacturers to install solar and battery systems.
Industry and Environmental Reactions
Chamber of Minerals and Energy WA’s chief executive warned that rising industrial power costs might require the government to adjust the renewable-share timeline to preserve affordability. Greens WA fossil-fuels spokeswoman Sophie McNeill argued that approving the Keralup hub undermines the renewable target and called for a clear government stance against new large-scale gas projects. Shadow energy minister Steve Thomas criticized the government for acknowledging the 89 percent price jump while failing to address similar increases over the past four years. Solutions for Climate WA director Jess Panegyres welcomed the renewable target, describing it as a step toward a cleaner electricity system for the community.
Key Figures & Data
- APA – developer of the 870 MW Keralup Energy Hub.
- 210 MW temporary plant for an undisclosed client (operational 2027-2032).
- 660 MW battery-supporting unit.
- Expected gas consumption: ~150 TJ day?¹ (?10 % of WA’s daily use).
- Renewable target: 75 % of generation in the South West Interconnected System by 2031.
- Projected price without action: > $350 MWh; with target: ? $200 MWh.