Gas-fired generation – a fast-ramping but expensive source of electricity – decreased its overall share on a quarterly basis but reached new daily highs in June, including setting a winter record.
Australia is experiencing one of the world’s fastest energy transitions as coal-fired generators, which still supply the bulk of the grid’s electricity, reach the end of their lives. The share of power produced from the sun, wind and water continues expanding as billions of dollars pour into household and grid-scale renewables and batteries.
Loading
The adoption of cleaner energy to replace polluting power stations is a positive shift in the fight to combat climate change, as the electricity sector is a dominant source of national emissions. However, the speed of the transition is still lagging what experts say is required for Australia to achieve its 2030 greenhouse gas emissions targets.
It is also falling short of the rate officials deem necessary to compensate for the next wave of coal-fired generator closures without heightening the risk to consumers of power shortages or price spikes.
While 4.4 gigawatts of new generation and storage had been added to the east-coast grid, and 53 gigawatts of projects remain in the pipeline, AEMO says greater investment in renewables and fast-start gas plants is still needed to avoid the sort of volatile swings that caused wholesale prices to spike in June.
“More capacity will be available to meet these isolated days of elevated peak demand, alongside coal outages and reduced wind output,” Mouchaileh said.
“Ongoing investment in gas-fired power remains critical to generate energy during these periods of low wind or solar, or when storage reserves are depleted, and to support growing demand as our power systems transition.”
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
