Frontier Energy Limited may encounter delays in the development of its Waroona Renewable Energy Project in Western Australia after failing to secure critical Reserve Capacity Credits (RCCs) from the Australian Energy Market Operator (AEMO).
The project's Stage One includes a 120 MW DC solar scheme paired with an 80 MW/360 MWh battery energy storage system (BESS).
Although the project was provisionally assigned 87.2 MW of certified reserve capacity earlier this year, it missed out on RCCs during AEMO's final allocation for the 2026/27 capacity year due to an oversupply in the market.
RCCs are essential certifications under Australia's Reserve Capacity Mechanism (RCM), based on the amount of power a project can deliver to the South West interconnected system.
As a result of this shortfall, Frontier Energy has cancelled its debt arrangement with Infradebt Pty, which was contingent on securing RCCs. However, the company is pursuing alternative financing options, including bonds, to minimize delays, which are now expected to be under a year.
In addition, Frontier Energy has applied for support under Australia's AUD 67-billion (USD 45.9 billion/EUR 41.6 billion) Capacity Investment Scheme to help fund the project and move it forward.
