United action on Pilbara infrastructure could save Australia $30 billion: report

8 September 2025

Australia can save more than $30 billion over the next 25 years through a coordinated approach to the construction of electricity transmission and generation infrastructure in the Pilbara, according to a new report. Realising these savings will require miners, governments, transmission developers and energy providers to work together with urgency to deliver the regional infrastructure needed.

The new Marsden Jacob Associates (MJA) report, Common user transmission and decarbonising Pilbara energy demand, commissioned by the CEFC, supports a shared transmission model that would significantly decarbonise the Pilbara, one of the nation's most emissions-intensive industrial regions, while delivering economic and environmental benefits.

The Pilbara accounts for some 40 per cent of WA’s emissions and 23 per cent of Australia’s industrial emissions¹ due to the concentration of projects from the hard-to-abate mining, resources and industrial sectors in the region.

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.

Rob Wilson

Executive Director - WA and Resources, CEFC

The report presents a compelling case for a Common User Transmission Infrastructure (CUTI) system. 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.

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:

• $30 billion savings opportunity compared to a fragmented, go-it-alone approach. This includes $4 billion in avoided transmission costs and $26 billion in avoided generation and storage costs over 25 years.
• 21 per cent reduction in land required for transmission and a 29 per cent reduction in new transmission line length under a CUTI approach.
• 16 per cent reduction in required renewable energy and storage capacity assets due to a more efficient common-user approach.

Currently, about 98 per cent of the Pilbara’s energy is generated from fossil fuels, despite the region’s plentiful solar and wind resources. Electrifying mining, LNG operations, chemical production, and emerging green industries like hydrogen and green iron will require extensive transmission infrastructure to transport renewable energy from inland sources to coastal and remote industrial sites.

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.”

The CUTI approach would avoid unnecessary duplication and improve access for a wider range of users, including smaller miners and emerging green players, while also delivering a 29 per cent reduction in new transmission kilometres required and a 16 per cent reduction in generation and storage infrastructure needs.

A lack of common user approach in the rail sector has led to parallel infrastructure, ultimately increasing land disturbance, creating challenges for Traditional Owners while also limiting access for smaller players. The report warns that without coordinated planning, transmission infrastructure risks repeating these costly mistakes.

“The cost of delay is enormous,” Mr 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 played a leadership role in promoting common-user transmission through its Pilbara Industry Roundtable, which gained public commitments from industry in late 2023 to develop shared user infrastructure.²

While all are progressing, major mining companies are approaching the energy transition at different speeds. Notwithstanding, they remain key to establishing a common user transmission solution.

Mr Wilson added: “There are significant benefits for the major Pilbara miners of working together, rather than individually funding inefficient subscale systems. 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 CEFC also stresses the importance of meaningful engagement with Traditional Owners. A coordinated transmission strategy reduces land disturbance and respects the call for long-term planning, rather than a piecemeal approach that results in multiple overlapping projects.

1 As measured under the Safeguard Mechanism.

2 Source: WA Government, Landmark agreement on Pilbara decarbonisation, WA.gov.au, 2023