Strike Energy (ASX:STX) said the Western Australian Economic Regulation Authority (ERA) finalized its benchmark reserve capacity price (BRCP) for the 2028-to-2029 capacity year at AU$488,500 per megawatt per year, according to a Monday Australian bourse filing.

The final BRCP represents a 35% increase on the 2027-to-2028 benchmark of AU$360,700 per megawatt per year, reflecting updated assessments of new-entrant costs and the increasing value of dispatchable generation as the grid transitions away from coal-fired supply, the filing added.

The company said its South Erregulla Power Plant has been awarded 85 megawatts of certified capacity for the 2026-to-2027 and 2027-to-2028 capacity years, equating to about AU$18.4 million and AU$30.7 million, respectively.

Strike expects to be awarded its full 85 megawatts of capacity for the 2028-to-2029 capacity year, subject to the normal certification processes under the Wholesale Electricity Market rules.

The company said the construction of its 85 MW South Erregulla Peaking Power Station continues to progress well, with the project remaining on budget and on schedule for targeted completion by Oct. 1. Overall, the project is now 82% complete, with procurement at 96% complete.

The company's shares fell almost 5% in recent Monday trade.