Synergy’s 2023-24 Annual Report is now available.
Annual Report 2024
Leading Western Australians to their intelligent energy future
About this report
Our Annual Report aims to provide our customers, community and other stakeholders, as well as our owner, the Western Australian Government, with an overview of our operations and financial performance for the period ended 30 June 2024.
We have reported in accordance with the provisions of the Government Trading Enterprises Act 2023.
We welcome your comments and feedback via email at: media@synergy.net.au.
Messages from our leaders
About usMichelle Shepherd, Chair
It was another exceptional year for Synergy, as the organisation continues to adapt to the changing energy landscape. Synergy is on track to meet its 2030 decarbonisation target, a reduction in carbon emissions by 80 per cent by 2030 from 2020 levels.
David Fyfe, Chief Executive Officer
Synergy has celebrated some significant achievements this financial year, delivering against its strategic objectives. We continue to provide a quality service to more than one million customers throughout the South West Interconnected System (SWIS) and ensure no one is left behind in the energy transition.
2023/24 highlights
Read more on how we lead Western Australians to their intelligent energy future in 2023/24
Leading the charge in WA
Our battery energy storage systems will help stabilise the SWIS by absorbing excess solar power during the day and discharging it in the evening, as well as leveraging the ability to charge and discharge large amounts of energy rapidly to dampen minute-by-minute fluctuations in variable renewable electricity.
We have been at the forefront of deploying and testing battery technology in Western Australia, through Kwinana battery energy storage system 1 (KBESS1), the first utility-scale battery in the SWIS.
Since October 2023, KBESS1 has been operating in the WEM after it was commissioned in mid-2023. On average it has withdrawn 275MWh per day (the majority of this assisting in the daytime energy demand trough) from the grid and discharged 231MWh per day into the grid (the majority of this assisting with the evening energy demand peak). This equates to 1.3 cycles per day, where a cycle is a full battery charge and discharge. Its maximum daily use was 2.9 cycles when it withdrew 571MWh and injected 521MWh on 7 June 2024.
With KBESS1 successfully completed, we have been able to identify further efficiencies in how we deliver the next tranche of storage projects, including both Kwinana battery energy storage system 2 (KBESS2) and Collie battery energy storage system (CBESS).
Construction of KBESS2 commenced in mid-2023, supported by local contractor, Genus Industrial Services, creating up to 160 local jobs. In January 2024, 288 containerised battery units were lifted into place and, by July 2024, KBESS1 substation integration work had been completed, providing the connection for KBESS2 to the Western Power network. As at July 2024, commissioning commenced, with facility testing scheduled for October 2024. KBESS2 is expected to operational by the end of 2024.
We received development approval for one of the largest battery energy storage systems in Australia, CBESS, in December 2023. The project, which will generate up to 500 local jobs during construction, will utilise 640 containerised batteries, 160 inverters and 260 kilometres of high voltage cables. In February 2024, Collie-based company, Cardinal Contractors, commenced site-preparation works, which were completed in May 2024. Balance of plant contractor, SCEE Group, mobilised to site in June 2024 with CBESS expected to be operational by the end of 2025.
The batteries mark significant progress towards our strategic objective of building 1,100MW of energy storage by 2030.
Supporting our vulnerable customers
Synergy has responded to cost-of-living pressures by focussing on the unique energy needs of vulnerable customers through providing compassionate support, energy education and peace of mind when they need us the most. Strategies used to support customers in financial hardship focus on early engagement to help them better manage their debt and improve energy literacy to reduce energy consumption.
The Case Management program provides tailored hardship assistance options to customers experiencing severe financial difficulty. The team consists of case managers who are specially trained to work directly with customers on an individual basis.
In the financial year 2023-24, Synergy’s case management team supported 6846 customers in hardship, delivering valuable outcomes such as:
- Reduced energy use for 25 per cent of customers so they were able to meet ongoing consumption costs.
- Connecting customers to community support services.
- Customers piloting new tailored products and services.
- Improved customer sentiment – customer feedback has highlighted the value of having an empathetic, understanding team to speak to.
- Improvements in engagement with 82 per cent rating the case management program positively for customer service and program support.
Helping deliver the WA EV Network
As part of the State Government’s Electric Vehicle Action Plan, which aims to boost electric vehicle (EV) uptake in Western Australia and contribute to the State reaching its target of net-zero carbon emissions by 2050, Synergy and Horizon Power are delivering Australia’s longest EV charging network.
The WA EV Network will include 98 fast charging stations across 49 locations in Western Australia, stretching over 7,000 kilometres from Kununurra in the north, to Esperance in the south and Mundrabilla in the east. The project has progressed significantly since being announced in late-2021. By June 30, 2024, Synergy had completed 20 of 22 WA EV Network fast charging sites on the South West Interconnected System (SWIS). The network is expected to be completed in late-2024.
To date, more than 15,000 charges have occurred via WA EV Network charging stations located in the SWIS, with 34 charges on average per day across the network and one and a half hours of use per day per charger. The Kings Park charging site averages nine hours a day.
Charging patterns across the WA EV Network are encouraging with around 65 per cent of charges occurring between 9am and 3pm, during off peak demand periods, contributing to a more stable electricity system.
There has been a continuing upward trend in EV registrations in Western Australia. In the December 2023 quarter, there were more than 17,000 electric vehicles registered in the state, which made up about 0.84 per cent of total light vehicle registrations.
Retiring and rehabilitating for the future
Synergy is in the process of decommissioning and reusing the site of the old coal fired Kwinana Power Station, which closed in 2015. The Kwinana Rehabilitation Project started in 2016 and involves the demolition of the six retired coal, oil and gas-fired steam generating units.
During the 2023-24 financial year, engineering analysis and risk assessments provided assurance the works may be completed safety and without impacting adjoining operating assets.
A bespoke mast climber underwent testing before starting its climb up the first of two chimney stacks. It will climb up the outside of the stack and break sections into the stack. This approach improves safety and will minimise the impact on the site.
The demolition of two large coal bunkers, boilers, turbines and most of the turbine hall structure has started. Preparation and preliminary works such as boundary protection, energy isolation, internal office stripping and decommissioning have been completed. Hazardous materials have been successfully managed. Steel is being recycled and soils/sand stockpiled for re-use on site where practical.
Providing additional services to the energy market
Synergy awarded a number of contracts to provide market services to the Australian Energy Market Operator via the non co-optimised essential system service (NCESS) and supplementary reserve capacity processes. These are designed to support system and network needs when they are not being met through the existing market mechanisms, for example to mitigate minimum demand events.
One of our NCESS contracts leverages our Solar Rewards product which was launched on 1 October 2023.
Solar Rewards allows our customers to opt-in to unlock further value from their rooftop solar systems through greater participation in the energy system.
It enables us the option to temporarily reduce the output of participating customers’ rooftop solar when electricity demand is low, and instead provides energy at no cost to the customer from the grid to assist with grid stability. About 4,000 customers opted-in, with many more joining the waiting list.
The Solar Rewards initiative will help reduce the need for Emergency Solar Management (ESM). ESM is where rooftop solar systems are turned off remotely as a last resort measure to protect the grid during extreme low load events.
Through our other NCESS contracts, the Australian Energy Market Operator can draw on Kwinana battery energy storage system 1 and our partnership with a third-party aggregator. Once completed, the Australian Energy Market Operator will also leverage Kwinana battery energy storage system 2 for NCESS events.
Launching the Innovate Reconciliation Action Plan
During the year, we launched our Innovate Reconciliation Action Plan (RAP) July 2023 - July 2025, following its endorsement by Reconciliation Australia.
Our RAP, which continues to build on the progress we have made since launching our first RAP in 2021, articulates our commitment to further developing reconciliation through respect, relationships and opportunities with, and for, Aboriginal and Torres Strait Islander people.
Commitments contained within the RAP include increasing the number of First Nations people employed by our organisation, establishing new early career pathways for Aboriginal and Torres Strait Islander people, facilitating cultural awareness training opportunities across our workforce and developing meaningful commercial relationships with Aboriginal and Torres Strait Islander businesses.
Supporting local communities
Synergy is committed to making a meaningful contribution to the communities of Western Australia. Support for communities is one of many ways we are helping achieve a more inclusive, connected and sustainable future.
During the 2023-24 financial year, Synergy provided assistance through collective donations (grants programs), volunteering, partnerships and community engagement.
2023-24 financial year community activities included:
- Volunteering hours: 421
- Sponsorships (excluding grants): $357,189
- Donations (goods to the value of): $57,600
Our employees also volunteered for worthy causes such as Operation Sunshine WA, Dress for Success Western Australia and Clean Up Australia Day.
Strategic progress
Guided by our values, our strategy is underpinned by four key pillars: anticipating and serving our customers’ needs, embedding social value to enable better decision making, being a proactive and adaptive organisation focused on value and quickly applying, scaling and integrating energy solutions.
Pleasingly, we made significant progress on our strategy during the 2023-24 financial year.
Customer centric
- Empower our customers’ intelligent energy future with customer-centric solutions
- Support energy equity across all our customers – leaving no one behind
- Deliver renewable energy to contestable customers, in a profitable way
Social value
- Keep our people physically and psychologically safe
- Cultivate a highly capable, diverse, and engaged workforce
- Create a positive outcome for our customers and the community
Proactive
- Build understanding and buy-in with the Western Australian community for our energy transition journey
- Maintain safe, reliable and efficient operation of Synergy’s generation and storage assets
- Drive the long-term financial sustainability of Synergy
- Advance toward our net zero 2050 emission reduction targets
Solutions focused
- Grow our portfolio of generation and storage assets to reduce emissions and meet customers’ needs
- Lead a just and orderly transition for closure, decommissioning and rehabilitation of our coal assets
- Build low-cost, scalable aggregation and orchestration capabilities, and seamlessly integrate customer DER
- Achieve an optimised demand-supply portfolio, to 2030 and beyond
We are Synergy
We’re all connected — and everyone has a part to play in our energy future here in WA.
The journey towards a sustainable energy future will see us create renewable energy and storage, and reduce carbon emissions.