Pacific Energy, Horizon Power sign 20-year PPA for solar hybrid in Western Australia

November 11, 2025
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Construction is scheduled to commence in April 2026, with completion expected in the first quarter of 2027. Image: Pacific Energy.

Developer Pacific Energy has signed a 20-year power purchase agreement (PPA) with Horizon Power to deliver a hybrid power system to the town of Leonora in Western Australia’s goldfields, aiming for up to 60% renewable energy penetration by 2027.

The hybrid system will be co-located at a dedicated site near Leonora’s airport and comprise 2.7MW of diesel generation, a 2.4MW solar PV power plant, and a 9.9MWh battery energy storage system (BESS).

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Construction is scheduled to commence in April 2026, with completion expected in the first quarter of 2027.

Located 828km northeast of Perth, Leonora, known for its gold rush history, will receive its total town power supply under the agreement, which follows a similar operational model to 10 other systems Pacific Energy owns and operates for Horizon Power across Western Australia’s regions.

The project represents another step in the state’s regional energy transition programme.

Pacific Energy CEO Mike Hall said achieving 60% renewable energy penetration in a remote town like Leonora demonstrates the potential when smart technology meets decarbonisation commitments.

“Leonora plays an important role in supporting the broader gold mining region, and this new power solution strengthens our footprint in the Northeastern Goldfields. It’s a smart, scalable system that reflects our long-term commitment to powering the communities and industries that drive Western Australia’s economy,” Hall added.

The company will support the system through its in-house 24/7 Remote Operations Centre to monitor reliability and provide prompt response times to unscheduled outages.

The Leonora project builds on Pacific Energy’s established track record in Western Australia’s remote energy sector. The company recently completed a 61MW solar-wind hybrid system to power a Western Australian gold mine, demonstrating its capability in large-scale renewable energy integration for mining operations.

Horizon Power, the state-owned electricity provider serving regional and remote Western Australia, has been expanding access to renewable energy across its service territory.

The utility serves over 35,000 residential and 9,000 business customers across a 600,000-square-kilometre area. The partnership with Pacific Energy extends their collaboration on hybrid power systems designed to reduce diesel dependence in remote communities.

Pacific Energy has previously delivered renewable energy solutions for Horizon Power’s regional customers, including projects that have significantly reduced diesel consumption and carbon emissions. The company recently completed solar module installation at a 35MW plant in Western Australia.

The Leonora hybrid system follows successful renewable energy deployments in other Western Australian towns. Exmouth operates on 80% renewable energy from solar PV and batteries through a similar Pacific Energy and Horizon Power partnership, demonstrating the scalability of hybrid power solutions in remote locations.

The 9.9MWh battery energy storage system will provide energy shifting capabilities, storing solar generation during daylight hours for dispatch during evening peak demand periods.

This configuration enables higher renewable energy penetration while maintaining grid stability and reliability standards required for remote town power supply.

Pacific Energy, owned by Queensland Investment Corporation, has expanded its portfolio to over 550MW of power generation capacity, equivalent to a typical coal-fired power station.

The company added more than 76MW to its portfolio in the previous year, reflecting growing demand for distributed energy solutions in Australia’s remote regions.

The Leonora project addresses the energy needs of Western Australia’s goldfields region, where mining operations and remote communities require reliable power supply.

Horizon Power’s regional energy program has received funding support from both the federal and state governments to deliver clean energy solutions to Western Australia’s remote communities.

The utility’s partnership model with Pacific Energy enables the private sector to bring expertise in renewable energy development while maintaining public ownership of essential infrastructure assets.

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