Electrifying the Pilbara
A compelling case for common user transmission infrastructure to electrify the Pilbara.
Australia’s Pilbara region is already an economic and export powerhouse, contributing nearly 20 per cent of Western Australia’s total economic output. Electrification is as critical to the Pilbara’s well-established industries as to the exciting emerging opportunities of the future.
Electrifying the Pilbara
September 2025
The Common User Transmission and Decarbonising Pilbara Energy Demand report developed by Marsden Jacobs Associates for the CEFC, assesses the economic, financial, social, and emissions abatement impacts and benefits of building common user transmission infrastructure in the Pilbara.
Read our Investment Insight Read the full report
There are significant benefits for the major Pilbara miners of working together, rather than individually. 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 this requires urgent cooperation, coordination and leadershipRob WilsonExecutive Director – WA and Resources, CEFC
about the Sector
The Pilbara energy system is dominated by a small number of very large, mostly islanded, diesel and gas-based energy systems operating outside of, or with, relatively small physical links to the North West Interconnected System.
While renewables account for just two per cent of Pilbara energy use, the region is rich in solar and wind resources and will increasingly benefit from rapid improvements in the economics of large‑scale storage and technical maturity of electrified transport.
The decarbonisation of heavy industries in the Pilbara largely relies on the ability to electrify existing operations and displace fossil fuels, and then transform the electricity system to produce, store and transport renewable energy generation.
The role of the CEFC
Through the Rewiring the Nation Fund, the CEFC is investing in the development of a secure, reliable and affordable electricity system as Australia targets net zero emissions by 2050.
In August 2023, the Australian Government and the WA Government announced a letter of intent for up to $3 billion to be made available through the Rewiring the Nation Fund.
This capital is intended to leverage private investment to meet the transmission and infrastructure needs that underpin decarbonisation across WA and the Pilbara and to attract further industry to the region.
By commissioning the Common user transmission and decarbonising Pilbara energy demand report, the CEFC has sought to provide further information around investment decisions that will support the electrification of the Pilbara.
report Findings
A compelling case for common user transmission infrastructure
Marsden Jacob Associates analysis provides a compelling case for the delivery of electrification and common user transmission infrastructure (CUTI) in the Pilbara. CUTI would enable multiple users and generators to connect to a single, shared grid, replacing the traditional model where each miner builds and operates private, siloed infrastructure.
The analysis finds that new common-use infrastructure in the Pilbara could reduce environmental impact by preventing unnecessary infrastructure duplication. CUTI could also enable access to diverse renewable energy sources, support energy security and reliability and reduce the impact of industry on the environment.
When compared with a ”go-it-alone” approach, a common user approach;
- Requires around 29 per cent less new transmission kilometres, representing a saving of some $4 billion in capital expenditure over 25 years.
- Requires about 16 per cent less renewable energy and storage representing savings of as much as $26 billion in generation capital expenditure over 25 years.
- Enables new green industry development.
The analysis also found that electrification could reduce diesel fuel consumption by between 2.8 and 3.6 billion litres a year, saving between $4.2 and $5.3 billion annually.
