Frontier Energy Well-Positioned To Address WA’s Power Deficits

Frontier Energy Limited (ASX: FHE) is set to play a crucial role in addressing the forecasted power generation deficits in Western Australia (WA), as outlined by the Australian Energy Market Operator’s (AEMO) 2024 Electricity Statement of Opportunities (ESOO).

The report indicates a growing electricity demand, predicting significant shortfalls from 2027 and highlighting the urgency for new generation and storage solutions.

According to the ESOO, at least 391 megawatts (MW) of new capacity will be needed by the 2027-28 capacity year, with requirements swelling to 2,880MW by 2033-34.

Notably, Frontier’s Waroona Renewable Energy Project is well-positioned to meet this demand.

The project’s initial stage includes a 120MW direct current (dc) solar facility coupled with an 80MW four-hour battery storage system, which is instrumental as the region phases out coal-fired power.

Urgent need for renewable capacity

Frontier CEO Adam Kiley said: “Similar to last year’s ESOO report, the 2024 version again highlights the urgent need for renewable capacity to be added in the WEM and paints a sobering picture of forecast shortfalls in electricity supply over the next decade, as demand continues to increase while fossil-fuelled generation is planned to be retired.

“Stage One of the Company’s Project, which has 120MWdc renewable solar electricity and 80MW four-hour battery storage, will help address this urgent need, especially as it is located in an unconstrained part of the electricity network.

“Fortunately for the Company and for the WEM, Waroona’s expansion potential is significant at multiples of Stage One capacity.

“Expansion studies are expected to commence in the second half of this year.”

Well-positioned to capitalise shortfall

The Stage One development of the Waroona Project is targeting the commencement of production in the 2026/27 capacity year, immediately before the significant deficits that are forecast in the ESOO.

The Stage One development comprises a 120MWdc solar farm and an integrated 80MW 4-hour battery.

To ensure commercial production in the 2026/27 capacity year, the company recently signed key contracts with Western Power to begin detailed design and procurement of long-lead items for the interconnection works.

These are a critical path item to ensure construction of Stage One is completed in mid-2026.

Financially, Frontier is well-positioned as well with about A$10 million in its coffers

 

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