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Australia’s dependence on gas generation during evening energy peak falls by almost 70%

Australia’s dependence on gas generation during evening energy peak falls by almost 70%

Summary

Australia’s reliance on gas for electricity during the busy evening hours has dropped by nearly 70% in the past year. This change happened because large batteries and many home batteries have started storing and supplying power, reducing the need for gas plants.

Key Facts

  • Gas use for electricity between 5pm and 8pm fell by 67% in the year to August.
  • Large-scale batteries and half a million home batteries helped replace gas power.
  • Batteries provided 49% of the power needed during evening peak in August 2026, up from 0.4% in 2020.
  • Gas power usage dropped from nearly 66% to about 21% in the same period.
  • Wholesale electricity prices have gone down due to the rise of battery use.
  • Gas power plants will still be important as backup during cold, dark winter weeks when solar and wind can’t supply enough energy.
  • The Australian Energy Market Operator expects gas to become mostly a backup energy source in future years.
  • Transitioning gas power will change how much gas is needed and may affect costs and availability.
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