The Western Australian Government has made critical infrastructure a key priority in its 2025–26 Budget, with major investments in both water security and renewable energy.
The Budget outlines more than $2.7 billion over four years to deliver new essential infrastructure, including a $584 million investment in Western Power’s Clean Energy Link – North, and $543 million to increase the capacity of the Goldfields pipeline.
It also includes investments in a new desalination plant; energy network connection works; a $3.5 billion initiative to keep regional water and power prices affordable; and a $337 million residential battery scheme in conjunction with Horizon Power and Synergy.
Driving the energy transition
Under its Made in WA plan, the State Government has pledged to fast-track clean energy projects and support local manufacturing of the components needed to deliver this renewable energy infrastructure.
This includes a $584 million investment in Clean Energy Link – North and Regans Ford terminal to unlock wind generation north of Perth, thereby to expanding renewable generation and enabling the shutdown coal-fired power stations by 2030.
The 2025–26 Budget also outlines more than $2.7 billion of new investment for made in economic infrastructure to unlock new and expand established industries. This includes a further $500 million boost to the Strategic Industries Fund – taking the total to $1 billion – which will support provision of further common-user infrastructure at Strategic Industrial Areas around the State including in Kwinana, the Pilbara and Kemerton.
The Western Australian Government has also pledged $50 million to support local battery manufacturing; $83 million to produce electric buses and ferries in the state; and $30 million will go towards a further round of funding for new energies industries through the Investment Attraction Fund to support critical minerals, hydrogen and carbon capture and storage projects.
A $25 million investment has also been announced to help diversify Western Australia’s economy and secure the poles and wires needed to deliver the state’s energy transition.
This includes $10 million to help deliver an advanced manufacturing facility in Forrestfield, which will supply Western Power with the thousands of kilometres of transmission lines it will require to deliver the state’s energy transition.
Western Power will also become a foundational customer of a new a new Advanced Manufacturing and Technology Hub (AMTECH) in Picton, and has been allocated via the Strategic Industries Fund to support the planning for this facility.
A further $10 million has been allocated in the State Budget for a Local Industry Development Fund, helping Western Power achieve the highest level of commercially viable local content in delivering the energy transition.
The Budget also incudes:
- $30 million towards the Collie Industrial Transition Fund (allocated beyond the forward estimates) to further support the transition of Collie’s economy to new and emerging industries
- $13.5 million to undertake network connection works required for a new 50 per cent renewable power generation station
- $5.3 million for the new Blackstone Power Station and Solar Farm (partially funded by $1 million in Commonwealth funding)
- $4.5 million to finalise the replacement of a transformer at the Murdoch Drive Zone substation in the Pilbara
- $2 million to undertake a study into establishing a space launch facility
- $1.6 million towards the Pilbara Energy Transition Plan
- $3.5 million to progress detailed design for Berth 8 and 9 at the Port of Geraldton, providing capacity to support renewable energy projects such as wind turbine blades
Water
The Western Australian Government said that securing the state’s water future is priority in the 2025–26 Budget, with several major investments in key water infrastructure – headlined by a $543 million to increase the capacity of the Goldfields pipeline by 7.2GL a day to support economic growth in the region.
The State Government has also announced an emergency Bulk Water agreement to purchase water for the Warren-Blackwood Regional Water Supply Scheme following an extended dry season.
To support growth and combat water scarcity in regional Western Australia, the State Government has unveiled a $10.3 billion pipeline of regional infrastructure works over the next four years, including:
- An additional $20.6 million for the Onslow Seawater Desalination Plant, bringing the total to $137.6 million, in partnership with Chevron.
- $4.5 million to undertake environmental regulation and water licensing assessment and approvals for the Pilbara region
- $4.2 million to update water planning information and water allocation plans in the Pilbara region
- $2.5 million towards planning for a new water source to secure Exmouth’s future drinking water supply
- $5 million for the Kalgoorlie‑Boulder Water Bank Project
- $8.5 million to protect and improve the water quality of the Peel‑Harvey estuary through the continued implementation of the Bindjareb Djilba (Peel‑Harvey Estuary) Protection Plan
The 2025–26 Budget will also deliver a $1.4 billion investment to support housing and homelessness measures. Key regional water and wastewater initiatives withing this include:
- $101 million Housing Enabling Infrastructure Fund investment in power and water infrastructure to unlock land for 33,000 future homes.
- $5.3 million from the Housing Enabling Infrastructure Fund for wastewater infrastructure to enable up to 550 residential lots in Kununurra.
- $9.7 million to commence providing infill sewerage services in Falcon
- $19.4 million through the Housing Enabling Infrastructure Fund to upgrade water and power infrastructure to enable the development of more residential housing lots in Mandurah, South Yunderup and Pinjarra;
- $3 million from the Housing Enabling Infrastructure Fund to deliver wastewater infrastructure to enable development of more than 5000 residential lots in Dalyellup, Busselton and Margaret River
The 2025–26 Budget also includes a $2 million investment, funded by the Federal Government, to establish a Western Australian Telecommunications Resilience Pilot Program in the Wheatbelt and Western Goldfields.
Batteries
The Western Australian Government also said that its 2025–26 Budget will help local businesses benefit from a surge in demand for household batteries to harness solar energy, with the $337 million WA Residential Battery Scheme.
The Residential Battery Scheme includes no-interest loans, ensures tens of thousands of households can store the renewable power they generate at home, receive ongoing cost-of-living relief and help secure the state’s clean energy future.
This is complemented by the Federal Government’s $2.3 billion Cheaper Home Batteries Program and aims to will ensure around five times as many households can seamlessly access the complementary schemes than originally proposed under the state scheme.
According to the State Government, an estimated 100,000 households are set to benefit from a combination of the state and federal election commitments to assist with the cost of installing batteries.
Synergy customers are eligible to receive up to $5000 and Horizon Power customers eligible for up to $7500. Households are expected to save up to $1500 per year through installing a battery and solar panels.
The State Government has also rolled out a $50 million Local Battery Manufacturing Program, which enables eligible Western Australian battery manufacturers to access a $30 million grants program to grow their capacity to provide competitive residential battery products to local and international markets.
Grants will be up to $10 million and must be matched dollar for dollar by the proponent.
The package also includes $20 million for low-interest loans or provision of State Government land to encourage industry to make major new investments in technology and expanded production facilities.
Western Australian Premier, Roger Cook, said that building batteries in Western Australia was a key part of the State Government’s Made in WA plan.
“It will support our nation-leading battery rebates, which in turn will secure our clean energy future and provide long-term, sustainable cost-of-living relief to tens of thousands of households throughout Wester Australia,” Mr Cook said
“These programs are part of a Budget that will secure our state’s economic future and deliver a future that’s Made in Western Australia.”
Western Australian Energy and Decarbonisation and Manufacturing Minister, Amber-Jade Sanderson, said the Residential Battery Scheme and the Local Battery Manufacturing Program are clear examples of the State Government ensuring that Western Australians benefit from the energy transition.
“Direct grants and low-interest loans will provide support for local companies to expand to take advantage of the surge in demand for batteries from households wanting to store more of their solar energy for when they really need it,” Ms Sanderson said.
“The Residential Battery Scheme helps households with ongoing cost-of-living relief while creating the right environment for increased business investment and growth.”
Western Australian Treasurer, Rita Saffioti, said this this investment is good for business, good for households and good for the state’s economy.
“It’s about supporting local businesses to grow their capacity, ultimately creating more jobs for Western Australians while also keeping power bills lower for households,” Ms Saffioti said.
“The Local Battery Manufacturing Program is all part of our Made in WA plan, building on the success of returning railcar manufacturing to Western Australia to continue diversifying our economy, supporting jobs and propelling our State forward.”
Empowering the next generation
The 2025–26 Western Australian State Budget also includes several key investment to build tomorrow’s workforce and develop the next generation of skilled energy professionals. This includes a $331 million investment in training initiatives and a $122 million extension of popular Fee-Free TAFE initiative and additional provision of construction courses.
Other key training initiatives outlined in the 2025–26 Budget are:
- $100 million investment to support Fee-Free TAFE
- $33.9 million uplift in funding for the TAFE Modern Equipment program
- $429,000 to undertake planning for the $17.1 million expansion of South Metropolitan TAFE’s Munster campus to include renewable industries training facilities
The Western Australian Government said that the expansion of South Metropolitan TAFE’s Munster Campus will provide state-of-the-art facilities to deliver future workforce skills for the renewables industry, including wind energy, battery technology, green hydrogen, electrification, automation and robotics.
The project is expected to include instrumentation and battery laboratories, an automation classroom and control room, specialist classrooms for wind energy training, computer laboratories, general classrooms and other facilities.
Mr Cook said that building a skilled workforce helps keep Western Australia’s economy the strongest in the nation, powers the transformation to renewable energy and delivers on the State Government’s commitment to make more things in Western Australia.
“This Budget continues to reflect my government’s support for fee-free TAFE and securing a future that’s Made in WA,” he said.
“We know training is vital to delivering the workforce of tomorrow.
“That’s why my government is building Western Australia’s construction workforce, training our clean energy workforce, and providing the funding to make sure our students are trained with the best and most appropriate equipment.
“At the same time, we’re attracting skilled building and construction workers from overseas and interstate to meet the industry’s current demands.”
