A key milestone is reached at Frontier’s Waroona renewable energy project

Frontier Energy signs contract with Western Power in relation to interconnection works for Waroona renewable energy project
Contract covers the start of detailed design and procurement of long lead items
Subsequent expansion stages can use the same interconnection, lowering construction costs and time

Special Report: Frontier Energy has reached a key milestone in the development of its Waroona renewable energy project in Western Australia with the start of detailed design and procurement of long lead items for interconnection works.

Waroona is envisioned as a renewable energy project combining a 120MWdc (megawatts of direct current) solar facility with an integrated battery storage facility to supply clean electricity into the South West Interconnected System (SWIS) – essentially WA’s main grid.

This is critical as the Australian Energy Markets Operator forecast in August last year the state could experience a shortfall of 945MW in 2025-26 and about 4000MW by 2032-33.

The battery system, which is now expected to have a 4.5 hour duration from the original 4 hours thanks to the selection of lithium-ion phosphate batteries, will allow Frontier Energy (ASX:FHE) to benefit from the high average energy price of $143MWh by storing electricity generated by the solar panels during off peak hours (when the sun is shining).

Selecting LFP batteries also brought superior safety, longer cycle life, higher energy density, faster charging capabilities, wider operating temperature range, and lower environmental impact to the project compared to other battery technologies.

Importantly, it also resulted in a ~5% reduction in cost compared to the definitive feasibility study estimate of $118.5m.

Along with a reduction in the cost of solar panels, this is likely to deliver significant improvements to the DFS, which had indicated that Waroona will deliver annual EBITDA of $68m over the first five years of operation and a post-tax IRR of 21.6%.

Milestone reached

FHE has now signed contracts with state utility Western Power to start detailed design and procurement of long-lead items for the interconnection works which will link Waroona with the SWIS.

These works were identified as a critical path item in the DFS to ensure construction of the project is completed during 2H 2026.

Importantly for the company, future expansion stages can use the same connection, reducing the capital costs of each subsequent stage by about $10m and construction duration by six months.

These works will be aided by Waroona sitting just 0.5km from the Landwehr Terminal, enabling the sale of electricity into the SWIS on a section of the electricity transmission network with less constraints.

Frontier, Energy, ASX, FHE, Waroona, Renewable, Energy, Project, Adam, Kiley, Signing, Signs, Contract, SWIS, System, Interconnected, Construction, DFS — The Landwehr power terminal. Pic: Frontier Energy

“This is a major milestone for the company as interconnection works were identified as a critical path item to ensure construction is completed during 2H 2026,” chief executive officer Adam Kiley said.

Signing contracts with Western Power to commence design services and procure long-lead items is a major step to ensure this can be achieved.

“Frontier is committed to working closely with Western Power to enable timely connection of the project to the SWIS and allow for the development timeline to remain on track, thereby assisting WA to meet its forecast growing electricity supply deficit,” Kiley said.