The State Government recognises there must be transparency, certainty, and clarity around the energy transition. These values underpin our world-class investment environment.
To enhance clarity for industry, reduce barriers to market entry and support the connection of new renewable generation, the State Government is introducing an improved funding approach for transmission projects in the South West Interconnected System (SWIS), changing how capital contributions for connections to the network are calculated and collected.
This funding model will provide clarity around the financial contributions that industry will be required to make towards Western Australia’s renewable energy future.
This new approach will promote a fair and equitable energy transition, give industry the confidence to progress projects, and enable Western Power to expand the network in a timely manner - an essential element of the energy transition in the SWIS.
Fixed Capital Charge
The new funding approach involves the introduction of a Fixed Capital Charge.
New and expanded connections for generators, storage, and large users greater than 10 megawatts (MW) will pay $100,000 per MW towards transmission infrastructure costs.
This Fixed Capital Charge will replace the shared assets component of Western Power’s current capital contribution arrangement.
Connections for new and expanded generation, storage, and load under 10 MW will continue to be processed under the existing shared contributions policy because of their relatively low impact on the transmission network. This threshold ensures that only connections that materially impact the network are subject to the policy.
The charge will be payable in full at the conclusion of the Planning Stage of Western Power’s connection process, prior to the commencement of the Execution Stage, consistent with the existing arrangements for up-front capital contributions. However, an option to split the payment over two years will also be provided.
The State Government is targeting a 1 July 2026 commencement date for the new funding policies. Transitional arrangements will be in place until 30 September 2026 to ensure that projects that would have been processed under the existing shared assets arrangements prior to 30 June 2026 are left no worse off if there is a delay that is outside the applicant’s control.
To find out more details about the funding model, you can visit Western Power’s websites here.
Public Consultation
Energy Policy WA is committed to working in partnership with industry and community to deliver a timely and equitable energy transition for WA.
Implementing this new funding model will require legislative and regulatory changes, including changes to the Electricity Network Access Code 2004. The regulatory change process will be undertaken from early 2026 and will be led by Energy Policy WA.
The public consultation period will run until 5:00pm (AWST) on Friday 23 January 2026. Submissions can be made via email to EPWA-info@deed.wa.gov.au. The Consultation Paper can be downloaded at the link below:
Public Webinar
To support the development of submissions, Energy Policy WA hosted an online webinar on Monday, 15 December 2025.
The session covered:
- An overview of the proposed Fixed Capital Charge.
- What the changes could mean for industry.
It also served as a forum to ask questions about the details of the proposed new funding model.
For additional details, the slides from the public webinar are now available for download.
Slides from the Transmission Fixed Capital Charge Industry Consultation webinar.
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