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

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-14T15:25:29.378Z • Permanent link

Renewable energy advocates and policymakers have long hailed Australia's transformation into a leader in the clean energy space. The country's ambitious targets for reducing greenhouse gas emissions have been met, with the nation aiming to be carbon neutral by 2050. However, a new report from the Australian Energy Market Operator (AEMO) reveals that despite these efforts, the country still relies heavily on gas to meet peak demand during the evening hours. Specifically, the report states that gas generation now accounts for only 21% of the country's dispatchable power needs during the evening energy peak, down from 71% in 2019.

The shift away from gas towards renewable energy sources has been driven in part by the rapid expansion of wind and solar farms across the country. In 2022, a record 15.3 gigawatts (GW) of new renewable energy capacity was added to the grid, with wind and solar accounting for 12.4 GW and 2.9 GW respectively. This growth has enabled the country to meet its renewable energy targets, but it has also led to a decrease in the country's reliance on gas. The AEMO report notes that the growth of renewable energy has been driven by a combination of factors, including government policies, declining costs and technological advancements.

The impact of the shift away from gas has been felt across the country, with some companies benefiting from the increased demand for renewable energy. For example, Tesla's energy storage products have become increasingly popular, with the company's Powerwall batteries now meeting almost half of the grid's dispatchable power needs during hours of highest demand. This growth has enabled Tesla to expand its operations in Australia, with the company announcing plans to build a new battery factory in the country in 2023.

The shift away from gas towards renewable energy has significant implications for companies that rely on gas for power generation. For example, the Australian Energy Company, Origin Energy, has been forced to reduce its gas production in recent years due to the increasing demand for renewable energy. The company's decision to focus on renewable energy has enabled it to reduce its greenhouse gas emissions, but it has also led to a decrease in its revenue. Companies like Origin Energy are facing significant challenges in adapting to the changing energy landscape, with many struggling to balance their need for revenue with their commitment to reducing greenhouse gas emissions.

The growth of renewable energy has also had a significant impact on research communities and markets. The increasing demand for renewable energy has enabled the development of new technologies and products, such as energy storage systems and smart grids. These innovations have the potential to revolutionize the way energy is generated and distributed, but they also require significant investment and infrastructure. Researchers and policymakers are now focused on developing new technologies and policies that will enable the widespread adoption of renewable energy, but they are facing significant challenges in doing so.

The shift away from gas towards renewable energy is part of a larger pattern of transformation in the energy sector. The COVID-19 pandemic has accelerated the growth of renewable energy, with many countries around the world investing heavily in clean energy technologies. The European Union's Green Deal, for example, aims to make the region carbon neutral by 2050, with a focus on renewable energy and energy efficiency. The growth of renewable energy has also been driven by technological advancements, with companies like Tesla and Vestas leading the charge in developing new energy storage systems and wind turbines.