Western Australia backs major grid expansion with US$1 billion Clean Energy Fund

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The fund, which will be detailed in the 2026–27 State Budget, is intended to support a pipeline of transmission and renewable energy projects, particularly in Perth and the Southwest region. Image: Rafael Cruz.

Western Australia’s Cook Labor Government has announced plans for a AU$1.4 billion (US$1 billion) Clean Energy Fund to expand renewable energy infrastructure across the Southwest Interconnected System (SWIS). 

The fund, which will be detailed in the 2026–27 State Budget, is intended to support a pipeline of transmission and generation projects designed to improve access to clean, affordable and reliable electricity for households and industry, particularly in Perth and the Southwest region. 

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A key focus of the initiative is the Clean Energy Link (CEL) programme, including CEL-East, which will connect new wind and solar developments east of Collie to the grid. The government said CEL-East represents the next stage of expansion of the SWIS and is expected to be operational by the end of 2029. 

Meanwhile, CEL-North, currently under construction between Malaga and Three Springs, will strengthen renewable energy transfer from Western Australia’s Mid-West region through high-capacity transmission lines, substations, terminals and transformers. Completion is targeted for late 2027. 

Together, CEL-North and CEL-East are projected to deliver around 3GW of renewable energy capacity to residential, commercial and industrial users, while supporting approximately 800 construction jobs. 

“My government’s vision is to keep Western Australia’s economy the strongest in the nation. This requires a secure supply of clean, reliable and affordable energy for households and businesses, which is what we will deliver with our AU$1.4 billion Clean Energy Fund and declaration of Clean Energy Link – East as a priority project under the State Development Act 2025,” said state premier Roger Cook. 

In addition, CEL-Kwinana will be designated a priority project under the State Development Act 2025, alongside CEL-North and CEL-East. CEL-Kwinana will include new transmission infrastructure to support up to 900MW of additional demand in the Western Trade Coast industrial precinct. 

The government also announced an additional AU$7 million allocation in the upcoming budget to support Horizon Power’s renewable energy transition initiatives across regional Western Australia, including projects in the West Kimberley, Coral Bay, Hopetoun, Denham and the Pilbara. 

In March 2026, the Western Australian government unveiled its AU$153.3 million (US$109 million) ‘Made in WA Energy Affordability Investment Program (MEAIP)’ to accelerate decarbonisation in the state’s manufacturing sector, offering low-interest loans of up to AU$15 million per business for energy efficiency and clean technology upgrades. 

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