New report backs gas

A new report from Frontier Economics titled Potential for Gas Powered Generation to Support Renewables has used South Australia’s energy experience to assess the role gas-powered generation plays in a system with a large number of renewables.

The report said the role of gas was often undervalued in investment modelling and emissions brought about from gas-powered generation were likely to be quite low.

It also said gas-powered generation provided effective energy storage over long periods of time, making it well-suited to managing energy during seasonal weather patterns or long renewables droughts.

APGA CEO Steve Davies welcomed the report, saying gas-powered generation was uniquely placed to support renewable energy.

“Gas powered generation that is connected to the gas pipeline network can allow very high renewable electricity systems (90 per cent or more) to function reliably at much lower cost than they would otherwise,” he said.

“Put simply, the model says that in 2035 a National Electricity Market that is 93 per cent renewable generation and 7 per cent gas generation will be 36 per cent cheaper to run than one that is 100 per cent renewable generation.

“That is a $7.5 billion in annual cost saving.

“Further, APGA estimates that such a system would deliver emission reductions at least 95 per cent below current levels in the NEM.”

For more information visit the APGA website.

If you have news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at

Send this to a friend