An independent report has found that new gas supply is critical for the reliability of Australia’s power supply.
In the 2023 Electricity Statement of Opportunities (ESOO), the Australian Energy Market Operator (AEMO) said the availability of gas will be crucial to the National Electricity Market (NEM).
Australian Petroleum Production & Exploration Association (APPEA) chief executive Samantha McCulloch said the report highlighted the important role of gas.
“Gas is one of the main sources of electricity generation in Australia and is crucial to keeping the nation running,” McCulloch said.
“AEMO has highlighted that gas will play an increasingly important role in our electricity mix, as a reliable partner to renewables and as coal generation is phased out.
“Gas is the safety net we need as we transform our electricity system and governments must start listening to the repeated warnings from independent authorities of the need for new gas supply.”
AEMO estimated that over 1.5 gigawatts (GW) of new gas power generation capacity is needed in New South Wales and Victoria by 2026 to 2027 to meet current reliability standards.
“This year’s report highlights the pace of Australia’s energy transition and the urgency needed to deliver new investment to ensure reliable, affordable and cleaner energy for consumers,” AEMO chief executive officer Daniel Westerman said.
“Over the 10-year outlook, we continue to forecast reliability gaps, which are mostly due to the expectation that 62 per cent of today’s coal fleet will retire by 2033.
“To ensure Australian consumers continue to have access to reliable electricity supplies, it’s critical that planned investments in transmission, generation and storage projects are urgently delivered.”
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