A NEW REPORT FROM the Australian Energy Market Operator (AEMO) forecasts there will be no gas shortfall in the coming years, putting another major dent in the Federal Government’s plans to support new gas projects.
The Gas Statement of Opportunities suggests 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.
“The Morrison Government’s ‘gas-fired recovery’ fantasy is just that, an expensive, dangerous, and unnecessary fantasy,” said Climate Council senior researcher, Tim Baxter.
“There will be no shortfall, and in the electricity sector, gas is already being out-competed by clean, affordable renewable energy. In the next few years, electrification and efficiency will also lead to a decline in gas use in other areas such as manufacturing and industry,” said Mr Baxter.
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,” he said.
“Gas is also driving up power prices, and prices for our manufacturing industries. It has no role to play in our economic recovery,” said Mr Baxter.
“As the sunniest and one of the windiest places on the planet, Australia should be cashing in on its renewable advantage, and in doing so, rapidly reducing greenhouse gas emissions. It’s a win-win,” he said.
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