As Australia transitions from coal to more renewable
power generation, electricity generated by
Australian natural gas will be critical
in supporting the grid.
“When the sun doesn’t shine and the wind doesn’t blow for a long time, that’s where we need gas as the ultimate backstop for reliability. It won’t run very often but when it runs it will be critical."1
Australian Energy Market Operator (AEMO),
Chief Executive Officer Daniel Westerman, November 2024.
NATURAL GAS PLAYS AN IMPORTANT ROLE
IN AUSTRALIA’S ELECTRICITY MIX
In 2022-23, natural gas accounted for 18% of total Australian electricity generation - complementing renewables (34%) and coal (47%).
In WA, natural gas accounts for 60% of the state’s electricity generation, while in the NT gas generates 83% of electricity.2
Australian electricity generation fuel mix
100 90 80 70 60 50 40 30 20 10 0 1997-98 2002-03 2007-08 2012-13 2017-18 2022-23 2023 Coal Natural gas Renewables OtherSource: DCCEEW (2024) Australian Energy Statistics, Australian Energy Update 2024
RENEWABLES BACKED UP BY NATURAL GAS
When conditions don’t support renewables, and demand is high - that’s where natural gas can help.
NATURAL GAS IS PROVIDING RELIABLE POWER NOW AND INTO THE FUTURE
Natural gas power generation is critical to maintaining the reliability of Australia’s electricity networks, today and into the future. It can be switched on or off when needed to meet demand.
"Gas-powered generation is important for grid security and reliability as it can start up quickly. This means it can complement variable wind and solar generation and provide extra power supply during periods of peak electricity demand."
Australian Government, Future Gas Strategy, May 2024.
NATURAL GAS
IS PART OF THE LOWEST-COST ELECTRICITY MIX
“As Australia’s coal-fired generators retire after decades of service, renewable energy connected with transmission and distribution, firmed with storage and backed up by gas-powered generation is the lowest-cost way to supply electricity to homes and businesses."
Australian Energy Market Operator (AEMO), 2024 Integrated System Plan.
