Australia's gas generation during peak hours plummets 67% as batteries surge
Large-scale batteries and rooftop installations replace fossil fuels, meeting nearly half the grid's evening demand.
What to know
- Gas generation during Australia's evening peak (5–8pm) collapsed 67% in one year as batteries surged to supply 49% of dispatchable grid demand.
- Battery installation in Australia is now the fastest uptake of any electricity asset on record, driven by large-scale deployments and 500,000 home subsidies.
- Lower wholesale prices benefit households, but declining gas demand threatens generator profitability and future investment in dispatchable backup power.
- Gas will remain strategically essential as winter backup when solar, wind, and batteries cannot meet demand, a transition that requires urgent policy clarity to avoid cost shocks.
The dispute Whether Labor governments are genuinely committed to renewable acceleration, with one user noting skepticism that Labor differs meaningfully from the Coalition on fossil fuel industry alignment. · positions read across 4 posts and comments
Battery transition is solving energy security while fossil fuels must be phased out faster with strong government support.
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“I've been lucky enough to have a battery/solar installation put in so now we don't even draw from the grid unless it's been a few days of rain.”
byteseu@pubeurope.com · Mastodon ↗
Batteries and solar require strategic grid design and sufficient capacity planning to avoid future grid stress.
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“When we design solar battery at my place we went for solar panels to be thin but batteries to be fat because we rely on charging the battery with the free electricity during the mid-day hours.”
BatmaniaRanger · Reddit ↗
“Gas is going through a transition and its whole role is going to change. The sooner that we actually grasp that the future for gas generators is going to look nothing like the past, the better we will be at managing that whole process.”
Alison Reeve, Grattan Institute energy director · The Guardian ↗ · Sep 13
Josh Stabler Managing director, EnergyEdgeAlison Reeve Energy and climate change program director, Grattan InstituteAustralian Energy Market Operator Grid operator
How it unfolded 1 development · click the chart to see its coverage articlespostscomments
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Grattan Institute warns gas transition risks winter reliability and costs
Alison Reeve, Grattan Institute's energy director, acknowledged the shift as 'super good news' for price stability and grid volatility, but cautioned that declining demand and uncertainty could make gas more expensive and less profitable precisely when it is needed—during dark, still, cold winter weeks when solar, wind, and batteries cannot meet demand alone.
“We know that gas generators are going to be important, because they're going to be the backup when you get those two weeks in winter where solar, wind and batteries can't carry you through.”
— Alison Reeve -
I'm saying that we saw exactly that problem in Russia with low priced spirits and to a lesser extent in the UK with low priced cider. It has fairly catastrophic social and health effects that are extremely corrosive on society. The reason we put large taxes on things like alcohol and tobacco is because of the social costs - the items themselves…
2 more of the top 3 · 4 posts in this stretch
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When we design solar battery at my place we went for solar panels to be thin but batteries to be fat because we rely on charging the battery with the free electricity during the mid-day hours. Maybe we would need to chuck in more panels eventually if it gets significantly more expensive to stay on the grid...
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That's a complete diversion from the point being discussed. You're floundering. Gas is part of the global transition strategy to solve climate change. FYI, the gas we sell for cheap is under contract as per an absolutely insane decision from John Howard. That is well and truly not our decision.
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background
Australian Energy Market Operator reports gas at lowest Q2 in over 20 years — AEMO quarterly data (April–June 2026) confirmed gas generation recorded its lowest Q2 average in more than two decades, with declines 'most evident' during the evening peak across all regions.
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background
EnergyEdge analysis shows gas generation fell 67% during evening peak — Consultancy EnergyEdge released analysis showing gas generation during the busy early evening (5pm–8pm) fell 67% in the year to August 2026, while batteries surged to meet 49% of the grid's dispatchable power needs during that period, up from 0.4% in 2020.
Also covered reported alongside — the timeline has no entry for these yet
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first by The Guardian, 9d ago · also Guardian
What people are saying 1 voices from 1 site · best of 4 · verbatim
- Sep 15
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If domestic consumption is going down under Labor, which it wouldn't be under the coalition, is that not an important difference?