The Australian Energy Market Operator (AEMO) has today published its latest electricity supply outlook for Western Australia’s main power system, forecasting an improved outlook compared to the 2025 report.
Developed annually, the Wholesale Electricity Market (WEM) Electricity Statement of Opportunities (ESOO) forecasts electricity capacity and demand over a 10-year horizon for Western Australia’s South West Interconnected System (SWIS).
The WEM ESOO supports government and industry planning and investment decisions and helps set targets for capacity required to maintain power system security and reliability.
AEMO Executive General Manager Western Australia, Kirsten Rose, said the 2026 WEM ESOO shows sufficient capacity to meet demand to 2028-29.
“The near-term outlook for the SWIS has improved, and reliability targets are expected to be met over the next three years,” Ms Rose said.
“This improved outlook has been largely driven by strong investment alongside government-led initiatives,” she said.
More than 1,000 MW of new generation and storage is expected to be progressively delivered by 2030-31, with even more projects in the development pipeline.
The uptake of distributed energy resources including household batteries has also contributed to the positive near-term outlook driven, in part, by support from the Commonwealth and West Australian Governments.
“Consumer investment in rooftop solar and household batteries is playing an increasingly critical role in the power system,” Ms 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.”
Over the 10-year outlook, SWIS demand is expected to rise more than 50% as the population continues to expand, and homes and businesses increasingly electrify.
“While strong investment has been observed to-date, more investment will be needed over the second half of the outlook period to meet demand growth and replace ageing thermal generation, which is expected to progressively exit the SWIS over the remainder of the outlook,” Ms Rose said.
“We continued to see high investment interest with more than 2,000 MW of potential projects submitting expressions of interest in the 2026 Reserve Capacity Cycle, which procures capacity for 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,” she said.
ENDS
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About AEMO
AEMO is responsible for operating Australia’s largest gas and electricity markets and power systems in the best interests of Australian energy consumers. These include the National Electricity Market and interconnected power system in Australia’s eastern and south-eastern seaboard, the Wholesale Electricity Market and power system in Western Australia, the Victorian gas transmission system and gas markets across Australia.
As Australia’s independent energy markets and power systems operator, AEMO provides critical planning, forecasting and power systems security advice and services to deliver energy security for all Australians. AEMO is a not-for profit entity. For more information, head to www.aemo.com.au.