• Renewable energy to power more than half of Onslow's electricity needs

The State Government today announced the development of Australia's largest distributed energy resource microgrid, which aims to deliver more than 50 per cent of Onslow's electricity needs with renewable energy.

Energy Minister Mike Nahan said the new Onslow microgrid would include a mix of distributed solar energy generation and battery storage.

The project includes essential electricity network infrastructure, a new transmission line and substation, as well as a 5.25 megawatt gas-fired modular power station, designed to efficiently contract in size as the renewable energy contribution expands to meet energy needs.

"This project connects traditional energy sources with solar power and battery storage to deliver more than half of Onslow's electricity needs with renewables," Dr Nahan said.

"This will be Australia's largest distributed energy microgrid, creating a new era of energy competition and efficiency for households and businesses.  The development of a renewable energy microgrid in Onslow is another great example of how the State Government, by partnering with industry, is leading the way in renewable energy."

State Development Minister Bill Marmion said innovative technological advances presented the opportunity to revisit the approach previously negotiated under the State Development Agreement for the Chevron-operated Wheatstone liquefied natural gas project.

"The State Government, Horizon Power and Chevron agree the redesign of the gas-fired modular power station is the best way to integrate with the latest renewable energy technology and ensure a more sustainable energy supply," Mr Marmion said.

"As part of its obligations under the State Development Agreement, Chevron will provide a financial contribution for Horizon Power to build the power infrastructure."

Fact File

• Works on the power station are set to start in early 2017, with completion expected in early 2018
• The Chevron-operated Wheatstone project has committed more than $250m to social and critical infrastructure projects in Onslow including health, recreation and utilities
• The State Government has committed about $70m to the project
• The Wheatstone project is a joint venture between the Australian subsidiaries of Chevron, Kuwait Foreign Petroleum Exploration Company, Woodside Petroleum Limited and Kyushu Electric Power Company, together with PE Wheatstone Pty Ltd, part owned by JERA