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Horizon Power enters PPA for iconic WA destination

Horizon Power enters PPA for iconic WA destination

New Era of Renewable Energy for Exmouth Community

Pacific Energy and Horizon Power have entered into a 20-year power purchase agreement (PPA) aimed at supplying electricity to the coastal community of Exmouth, part of efforts to reduce carbon emissions in one of Western Australia’s key tourist hotspots.

As part of this deal, Horizon Power will generate power for Exmouth through a combination of large-scale and rooftop solar installations, along with battery storage. Gas-fired generation will only be utilised when absolutely necessary.

Construction and Renewable Energy Goals

The agreement includes the development of a 9.6MW solar farm, complemented by two batteries with a combined capacity of 10MW/49.6MWh, located adjacent to the current Exmouth Power Station. This initiative is expected to enable Exmouth to meet up to 80 per cent of its energy demands through renewable sources by 2026, with construction of the new solar facilities scheduled to commence in mid-2025.

Significance of the Project

This hybrid energy system marks Pacific Energy’s inaugural off-grid power project designed to provide a substantial portion of a remote town’s annual electricity requirements through solar energy and battery storage solutions. The Western Australian Government views this agreement as a crucial step towards decarbonising regional Western Australia, following recent plans to develop transmission on the Burrup Peninsula to connect industries with emerging renewable energy projects in the Pilbara region.

Western Australia’s Premier, Roger Cook, remarked that this project will position Exmouth as a centre for renewable energy, reinforcing the State Government’s ambition to decarbonise regional areas across the state. “As we transition to renewables, initiatives like this will create job opportunities and stimulate economic diversity in local regions,” said Mr Cook. “My government is dedicated to transforming Western Australia into a global clean energy leader, providing sustainable energy for future generations.”

Future Prospects and Community Engagement

Energy Minister Reece Whitby expressed enthusiasm for the PPA, highlighting its role in the energy transition while ensuring that Exmouth will have clean, reliable, and affordable energy in the years to come. “The construction of the new solar farm and batteries will not only generate local employment but will also lead to a tangible reduction in emissions, positioning regional communities at the forefront of our state’s decarbonisation efforts,” stated Mr Whitby.

Pacific Energy’s Chief Operating Officer, Mike Hall, noted that the outcome stems from the community’s pursuit of a clean energy solution that would help protect their UNESCO World Heritage Site, alongside Horizon Power’s commitment to delivering cleaner energy to Western Australia’s regions. “It was vital for us to illustrate what an 80 per cent renewable solution could look like and how we could integrate different technologies into the existing infrastructure for a dependable, decarbonised power system,” Mr Hall explained.

Innovative Energy Solutions and Next Steps

Horizon Power’s CEO, Stephanie Unwin, stated that the energy landscape is evolving rapidly, and the company remains committed to enhancing renewable energy in regional Western Australia. “We take pride in pioneering innovative projects like the new energy system in Exmouth, aiming for a clean energy future with dependable power for regional residents,” Ms Unwin highlighted.

The Exmouth Energy Project is seen as a significant undertaking that will reduce both financial and environmental costs while fulfilling the community’s aspiration for a sustainable energy future. Engaging with the community has been essential in aligning power infrastructure with their specific needs and interests, and Ms Unwin looks forward to ongoing collaboration with Exmouth residents to support their future energy requirements.

Details on the Hybrid Energy System

The proposed solution by Pacific Energy features an advanced battery energy storage system (BESS) that will ensure the town has access to renewable energy even after sunset. Given Exmouth’s location in a region susceptible to cyclonic winds, wind energy was not a feasible option for this project. Instead, the design incorporates a sophisticated industrial battery that optimises the use of solar energy, while also meeting Horizon Power’s technical requirements for fault current contributions, allowing for extended periods of hydrocarbon-free operation.

It is projected that the combination of the solar farm and the BESS will offset nearly 14,000 tonnes of carbon emissions each year throughout the duration of the 20-year PPA. Pacific Energy officially gained ownership of Exmouth’s existing gas-fired power station in mid-September 2024, with work set to begin on integrating renewable solutions in early 2025. The new energy system is anticipated to be fully functional by the end of 2026.

Featured image: Horizon Power.