There will be no gas shortfall, says AEMO

A new report from the Australian Energy Market Operator (AEMO) forecasts there will be no gas shortage in the coming years, amid federal government plans to support new gas projects.

The Gas Statement of Opportunities suggested that the Port Kembla import terminal will ease supply concerns, and highlights how measures such as electrification of homes and businesses are further reducing gas demand. It comes after AEMO found Australia does not need any new gas.

Climate Council senior researcher, Tim Baxter, said electrification will lead to a decline in gas us in the manufacturing and industry.

“There will be no shortfall, and in the electricity sector, gas is already being out-competed by clean, affordable renewable energy.”

A recent Climate Council analysis found that gas generation in Australia’s largest electricity grid fell by 19 percent in 2020 while solar and wind had a record year, despite the COVID-19 pandemic.

“Gas is a fossil fuel driving climate change. We’ve just been hit with devastating floods, which is the latest in a line of extreme weather events exacerbated by climate change. We’ve also experienced record drought, the Black Summer bushfires and scorching heatwaves,” Baxter said.

“Gas is also driving up power prices, and prices for our manufacturing industries. It has no role to play in our economic recovery.

“Australia should be cashing in on its renewable advantage, and in doing so, rapidly reducing greenhouse gas emissions. It’s a win-win.”