Amidst Australia’s accelerating shift toward renewable energy, recent government policy announcements and industry advocacy have placed natural gas at the centre of the nation’s energy transition strategy. Federal authorities now plan to use gas as a ‘firming’ fuel, ensuring reliable electricity supply when intermittent renewables such as wind and solar are unable to meet demand. This approach follows mounting evidence that without flexible backup, Australia risks power shortages and price spikes, particularly as ageing coal-fired plants are retired.
The Sydney Morning Herald reports that the federal government intends to bolster gas exploration and infrastructure to support this transition, while also working to fast-track large-scale renewables projects. The move has been welcomed by energy companies and some industry groups, who argue that gas is a practical and relatively low-emissions solution for smoothing out gaps in renewable generation.
However, climate advocates and some experts warn that over-reliance on gas could lock in emissions and slow the expansion of truly zero-emissions technologies. The policy is shaping up as a compromise between immediate grid reliability concerns and long-term climate goals, with significant economic and environmental stakes for Australian households and businesses.
Key implications include the need for new investment in gas pipelines and storage, increased regulatory scrutiny, and ongoing public debate about the pace and nature of Australia’s energy transition. The outcome will influence everything from electricity prices to the nation’s ability to meet its international climate commitments.
It’s quite amazing where we have come from and where we are now. Winding back the clock, we can start to see that the path clearly and transparently proposed in the Scott Morrison era was, in fact, the path. Taxpayers can be left to wonder how much is wasted on the politicisation and green-baiting for political gain over the national interest.
Context & Background
Australia’s path to net-zero emissions has long involved debate over the role of fossil fuels, particularly gas, during the transition phase. The federal government and energy regulators have emphasised the need for reliable baseload and backup power to support intermittent renewable sources like wind and solar. Gas-fired plants are seen as a flexible solution that can quickly ramp up to meet demand when renewables fall short, especially during periods of low wind or solar output. Critics argue over-reliance on gas could slow the full transition to renewables, while proponents maintain it is essential for grid stability and affordability as coal plants retire. This tension is reflected in policy discussions and industry lobbying, with significant implications for investment, jobs, and climate targets.
In This Story
Australian Government (Department of Climate Change, Energy, the Environment and Water)
The federal government agency responsible for national energy policy, climate action, and environmental regulation.
Australian Energy Market Operator (AEMO)
Manages electricity and gas systems and markets across Australia, provides forecasts and market reports.
Australian Energy Council (AEC)
Represents major electricity and downstream natural gas businesses, advocating for industry interests in national energy policy.
Renewable Energy Industry
Collective of companies and organisations investing in and operating wind, solar, and storage infrastructure across Australia.
Climate Council
Independent non-profit organisation advocating for climate action and rapid transitions to renewable energy.
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