Outlook 2025: Using gas and LNG to speed up the transition

The role of gas is changing from being a provider of a large volume of energy to peaking supply backing up expanding renewables

Zero-carbon energy continues to increase its share of the energy mix. Gas is seen as a natural partner to back up variable renewable energy, such as wind and solar, because of its firm, fast response and flexible power-generation technologies. In Australia, the increase in zero-carbon energy has not resulted in an increase in gas-fired power generation (GPG) volumes. Instead, GPG volumes have fallen as more zero-carbon energy supply enters the market. This is primarily due to low—and sometimes negative—operating costs (when subsidies are accounted for) for zero-carbon energy and the low operating costs of incumbent coal-fired power generators. A clear demonstration of this trend can be seen