Renewables power ahead of gas generation

Renewables pumped five times more power than gas into the national grid in 2021, exclusive data shows.

Coopers Gap wind farm, northwest of Brisbane. Picture: Dominic Elsome

Renewables pumped five times more power than gas into the national grid in 2021, exclusive data shows.

Climate Council analysis obtained by The Australian shows renewables reached “record highs” in 2021, while gas generation in the National Electricity Market fell to its lowest level in more than 15 years.

Victoria experienced the biggest jump in renewable energy generation of the states, and its use of gas dropped by 39 per cent.

In Western Australia, renewables overtook gas for the first time to become the largest source of power in the state’s largest energy grid – the South West Interconnected System.

Climate Council senior researcher Tim Baxter said there had been a “dramatic” reduction in wholesale prices in Victoria from almost $110 in 2017 to just under $60 in 2021.

“The pace of this uptick of renewables is the surprising thing,” he said. “Renewables like wind and solar happened faster than anyone could have predicted.”

Mr Baxter said a “significant chunk” of the energy production was being done through solar, including the small-scale panels on Australians’ roofs.

Figures from the Clean Energy Regulator this week showed a record amount of new small-scale solar was added to grids across Australia last year.

Former BP Australasia president Greg Bourne said wind and solar were going “gang busters”, particularly in WA.

“By 2030 we will be seeing days in WA which are completely renewable energy supplied,” he said. “It’ll still be a long time until we get a week supply, or day and night supply, but we’re ramping up.”

South Australia has, in the past t

wo years, met all of its energy demands through solar panels alone for short periods of time.

Mr Bourne predicted that by 2030 gas peaker plants might run to fill gaps in energy supply, but only for a few days a year and so would not make “commercial sense”.

The federal government has announced it would put $600m behind a gas-fired power plant in Kurri Kurri in the NSW Hunter Region after the industry failed to step up and fill the gap.

Labor also pledged to build the plant, but committed an additional $700m to make it 100 per cent hydrogen by 2030.

Opposition climate spokesman Chris Bowen said households and state governments were “charging ahead” with the takeup of renewables. “Labor’s Powering Australia plan will supercharge this effort, including upgrading the electricity grid and ensuring affordable energy for households and businesses,” he said.

A spokesman for Energy Minister Angus Taylor said the Climate Council was running a “crusade” against gas, which would continue to play a critical role in the energy mix.

“Australia is a world-leader in renewable energy generation. One in four Australian households have rooftop solar. These are extraordinary achievements – but the challenges are significant,” he said. “The key is balance ... between intermittent forms of energy and on-demand reliable power such as gas, coal and hydro. Gas doesn’t compete with renewables – it complements them.”

Resources Minister Keith Pitt said the gas industry was still providing significant economic opportunities.

Greens Leader Adam Bandt has declared that his party would seek a moratorium on gas, oil and coal projects until November in exchange for post-election support of a Labor government.