Natural gas will play a crucial continuing role in stabilising Australia’s energy grid during the country’s energy transition over the next 30 years, according to a report by the Australian Energy Market Operator (AEMO).

Australia’s electricity supply is expected to be generated mainly from renewable resources by the mid-2040s, using energy storage to help manage the challenges of seasonality and intermittency. But gas-fired generation will provide firming support during peak periods of demand, the AEMOreport suggested.

The Australian Petroleum Production & Exploration Association (APPEA) described the AEMO report as an endorsement of the vision that there will be a long-term role for natural gas in supporting renewable energy, as asserted by APPEA’s own 2022 Integrated System Plan (ISP).