Frontier Energy's strategic advantage

Frontier Energy (ASX:FHE) has shared updates regarding changes in Western Australia's energy policy that are set to benefit the Waroona Renewable Energy Project. Changes to the Benchmark Reserve Capacity Price and the Wholesale Electricity Market Investment Certainty Review are poised to enhance the project's economic viability and provide greater revenue certainty.

Impact and future outlook for Frontier Energy

Frontier Energy's announcement highlights the favorable impact of Western Australia’s energy policy changes on its Waroona Renewable Energy Project. With a 54% increase in the Benchmark Reserve Capacity Price, and the introduction of a minimum reserve capacity price floor, the company is set to benefit from increased revenue certainty. Furthermore, the 10-year capacity price guarantee option will enhance project bankability. These changes, alongside the expected update of the Definitive Feasibility Study in December, underscore Frontier Energy’s strategy to secure a robust financial footing for its renewable energy endeavors. The company is optimistic about leveraging these regulatory shifts to solidify its position in the energy market.

CEO insights on regulatory changes

The reserve capacity payment will strengthen the long-term economics of Frontier Energy’s project. We fully support the proposed changes which provide us with more certainty and support in financing discussions.