Australia could save more than $30 billion over the next 25 years by adopting a coordinated approach to electricity transmission and generation infrastructure in the Pilbara, according to a new report from Marsden Jacob Associates (MJA), commissioned by the Clean Energy Finance Corporation (CEFC).
The report, Common user transmission and decarbonising Pilbara energy demand, argues that a Common User Transmission Infrastructure (CUTI) network, in which multiple users are connected to shared infrastructure, could significantly cut costs and emissions in one of the nation’s most carbon-intensive industrial hubs.
The Pilbara accounts for about 40 per cent of Western Australia’s emissions and 23 per cent of Australia’s industrial emissions due to the scale of mining, resources and processing projects concentrated in the region.
Currently, about 98 per cent of the Pilbara’s energy is supplied by fossil fuels, despite strong solar and wind potential.
Electrification of mining, LNG operations, chemical production, and emerging industries such as hydrogen and green iron will require extensive new infrastructure to deliver renewable energy from inland resources to coastal and remote users.
CEFC CEO Ian Learmonth said: “The Pilbara is one of Australia’s economic powerhouses, and it now has a critical opportunity to lead the nation’s industrial decarbonisation.
“This report confirms that smarter, shared infrastructure delivers both climate and economic wins. It is the kind of solution that strengthens Australia’s position as a future energy superpower.
“We are proud to support this work, building on the WA government’s leadership in advancing shared transmission planning in the Pilbara.
“It shows what can be achieved when policy leadership, commercial opportunity and clean energy innovation come together with a shared goal.”
Key findings of the report include $30 billion in savings compared to a fragmented, go-it-alone approach, with $4 billion in avoided transmission costs and $26 billion in avoided generation and storage costs over the 25-year period.
The report also highlighted a 21 per cent reduction in land required for transmission, a 29 per cent reduction in new transmission line length, and a 16 per cent reduction in required renewable energy and storage capacity assets under a CUTI system.
CEFC Executive Director, WA and Resources, Rob Wilson, said: “This is a clear opportunity to build it once and build it right. The economic case is overwhelming.
“And the coordination required is both achievable and essential.”
He emphasised that a coordinated scheme would avoid unnecessary duplication and improve access for smaller miners and future green industries.
“The cost of delay is enormous,” Wilson said.
“It takes years and many millions of dollars in early investment to identify corridors, conduct engineering, and secure approvals.
“Without increased commitment from stakeholders now, the region risks defaulting to expensive and inefficient solutions.”
The WA government has been leading collaborative discussions on the issue, including through its Pilbara Industry Roundtable, which secured industry support in late 2023 for common-user infrastructure planning.
While major miners are progressing at different speeds toward decarbonisation, they remain central to establishing a collaborative outcome.
“There are significant benefits for the major Pilbara miners of working together, rather than individually funding inefficient subscale systems,” Wilson said.
“In addition, mid-tier miners, Pilbara industry, and future green industry would benefit from being able to access a grid.
“Everyone can win under this coordinated approach, but it requires urgent cooperation, coordination and leadership.”
The report also stressed the importance of engaging Traditional Owners, noting that shared corridors reduce land disturbance and align with calls for long-term planning over piecemeal projects.