Australia’s gas generation falls to lowest level since 2000 — OilPrice

In Australia, electricity generation from gas fell by 34% year-on-year in the third quarter, reaching its lowest level for July–September since 2000. OilPrice reported this, citing the quarterly report of the Australian Energy Market Operator, AEMO.

According to AEMO, despite lower demand for heating, total electricity consumption in the country rose by 1.3% over the quarter. The operator attributes this to continued electrification, higher industrial demand, and increased consumption by data centres.

Record share of renewable generation

Renewable energy sources provided a record 44.3% of electricity generation on Australia’s National Electricity Market in the third quarter. Generation from utility-scale solar power plants increased by 30%, while hydropower generation rose by 15%.

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The capacity of large-scale battery systems more than tripled over the year. Between 4:00 p.m. and 9:00 p.m., they provided 8% of generation during the evening peak, surpassing gas generation for the first time, whose share was 5.1%.

Decline in wholesale prices

AEMO also noted that households with rooftop solar panels and home batteries consumed approximately three-quarters less electricity from the grid during the evening consumption peak than households with rooftop solar panels only.

The average wholesale electricity price on the NEM fell by 27% compared with the corresponding period of the previous year and by 15% compared with the June quarter, to US$63 per megawatt-hour. This was the lowest average for the September quarter since 2021. According to AEMO representative Violette Mouchaille, more active battery charging and discharging helped reduce prices during evening peak-load hours.