Australia's latest federal funding agreement will see a shift towards renewable energy, with a focus on wind and solar farms and energy storage rather than gas or nuclear plants. Western Australia (WA) has signed a Renewable Energy Transformation Agreement (RETA) and opened bidding for the first Capacity Investment Scheme tender for the state. Under the agreement, the federal government will support the underwriting of new wind and solar generation, as well as energy storage, to meet the increasing energy demands for green iron, hydrogen, and ammonia production in WA. Despite concerns about rising electricity prices and a potential gas shortfall, the state is committed to decarbonisation efforts by investing in clean energy projects. WA Energy Minister Reece Whitby highlighted the importance of additional storage for firming wind and solar power during peak demand to complement existing investments in big batteries. The closure of coal-fired power plants by 2030 and the focus on renewables aim to provide clean, reliable, and affordable power for households and businesses. The federal capacity scheme will see a significant portion allocated to RETAs tailored to each state's needs, emphasizing the importance of renewable energy development and decarbonisation efforts.