Western Australia's government wants 75 per cent of electricity in the state's southwest grid to be generated from renewables by 2030/31.
Premier Roger Cook says the so-called affordable energy plan will put "maximum downward pressure on energy bills".
"Without our plan for affordable energy, energy prices for businesses could increase by 89 per cent by 2032," he told reporters on Tuesday.
"Delivering affordable energy to businesses is a fundamental part of my government's objectives to diversify WA's economy and create more jobs."
The plan also includes more support for households to invest in solar, batteries, and electric vehicles; and continued support for WA's domestic gas reservation policy and gas production.
"Ask any WA household that has solar panels or batteries, they will tell you solar is the cheapest energy that is available, Mr Cook said.
"Without the plan, we'll be reliant on aging coal-fired power stations, and that is just not the way of the future."
About 40 per cent of the electricity currently generated on the South West Interconnected System is from renewable energy.
Coal accounts for about a quarter, and gas provides the remainder.
The WA government plans to phase out all state-owned coal-fired power stations by 2030.
Opposition energy spokesman Steve Thomas said power prices for businesses had doubled in four years under the WA Labor government.
The new energy plan was an admission of failure, Dr Thomas said.
"That failure has been rebadged as the Future Energy System Outlook, but it is years behind," he said.
The WA Greens said the plan was "long overdue".
"WA is the last state to commit to a renewable target," Greens MP Brad Pettitt said.
It comes as the WA environmental watchdog releases details for a proposed new gas-fired power station about 55km south of Perth at Keralup, which, if approved, could be the largest in WA.
Meanwhile, environmental activists say a leaked WA Environmental Protection Authority letter warned Woodside that its plan to drill gas wells near a reef off WA's northwest coast for its Browse project risked significantly harming the environment.
Mr Cook said the letter from 2023 showed the detail the authority went to when examining the project and managing any potential environmental impacts.
"Those conversations are continuing between Woodside and the EPA, and we'll allow them to take place," he said.
The WA Greens called on the WA government to reject the Keralup power station and Woodside's Browse Gas Field project.
16°C