The east coast of Australia will need to 13 gigawatts of new gas fired electricity generation - the equivalent of building 26 new gas plants - within the next 25 years to back up the rollout of renewables.
AEMO said new gas powered capacity must be constructed between now and 2050 so the fuel source can continue to produce 5 per cent of the total energy mix in the grid. These plants will be needed in addition to a huge boost in batteries and pumped hydro. AEMO’s Integrated System Plan found the “optimal development pathway” for the lowest-cost energy grid would be powered almost completely by renewables and backed with gas, batteries and pumped hydro.The road map said gas would continue to play a small but crucial role.
A spokesperson for the Climate Change and Energy Minister Chris Bowen said the government was aiming to boost gas supply under its future gas strategy and that gas power would play a small but significant role in an energy grid dominated by renewables. Not everyone agrees that more gas is needed. Renewable and climate advocates argue that pumped hydro dams coupled with batteries can provide the storage needed to back up renewables, coupled with policies to reduce energy demand with increased energy efficiency.
“What we should be saying is we want to design a market with a reliable, low emissions mix and leave it to the market to solve the problem,” he said.
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