Western Australia will extend taxpayer subsidies to Griffin Coal and the Bluewaters power station for five years, pushing the support beyond June 2026 as part of a Griffin Coal extension authorized within six months of Premier Cook’s pledge to cut funding.

Cook and Energy Minister Amber-Jade Sanderson indicated that detailed commercial terms will be disclosed to Parliament once finalized.

The government announced the five-year extension despite earlier promises to end subsidies, arguing the move is needed for energy security during the transition.

The government argues aging coal assets are costly to run and that a path combining renewables, gas, and storage represents the least-cost option, with a plan to exit state-owned coal by 2030.

The 308 million funding envelope was designed to keep Griffin supplying major Collie stations, with projected future funding expected to be reduced after negotiating terms with Griffin and Bluewaters.

Public payments to sustain Griffin and Bluewaters reached 308 million by June, with ongoing costs to be disclosed in Parliament as funding shifts to commercial arrangements.

A Collie Basin Consolidation Taskforce will be formed to explore merging Griffin Coal with Premier Coal to improve efficiency, with a report due within six months as part of plans to exit state-owned coal by 2030.

Industry groups welcomed the extension, stressing the need to balance reliability and affordability during the renewables transition and to protect regional jobs.

As of December 11, about 209 million of the 308 million total had been paid to Griffin, with the government saying it will pursue commercial arrangements after June 2026.

Premier Cook says the extension keeps energy reliability and certainty for Bluewaters customers, Griffin Coal owners, and Collie workers during the transition away from coal, while still committing to retire the Muja power stations by 2030.

Cook previously said funding would stop in June 2026 but reversed course citing energy security during the transition, stating the eventual taxpayer cost would be significantly less than 308 million without giving a figure.

Energy Minister Sanderson notes a potential South West grid shortfall by 2033 and emphasizes green energy projects and large-scale wind as critical to meeting demand during the transition.