AEMO report shows just how out of touch the green extremists are

The challenges posed by intermittent wind and solar for electricity generation have been reconfirmed by the Australian Energy Market Operator, but climate extremists still seem unable to grasp the message. In a welcome statement, AEMO said what has always been obvious: flexible gas-powered generation is “the ultimate backstop for the national electricity market during periods of reduced renewable generation”.

Despite years of investment and overblown claims about the penetration of wind power being equal to total demand at some times, generation from wind was down 20 per cent in the June quarter, with wind availability down to its lowest levels since the second quarter of 2017. Hydro generation also was down 18 per cent to its lowest output for a second quarter since 2017. The drop in generation coincided with cold weather that drove increased demand for energy. As a result, gas use was up 16 per cent and black coal up 7 per cent.

The squeeze on gas supplies as a result of mismanagement by state governments driven by ideological demands has produced a shortfall of gas availability when it was most needed. According to AEMO’s Quarterly Energy Dynamics report, gas markets remain vulnerable to price shocks and supply shortfalls over winter, despite record gas supply flowing south from Queensland as supplies have run short in Victoria. Domestic gas prices increased by $13.76 across the quarter, influenced by cold weather driving up demand in southern states and lower gas production from Longford, Victoria.

The Albanese government has belatedly acknowledged the important role that gas must inevitably play. On Tuesday, Resources Minister Madeleine King announced new offshore gas exploration permits to support the domestic east coast market and west coast producers. Permits will be finalised for Esso and Beach Energy in the Otway and Sorrell basins as well as Chevron, INPEX, Melbana and Woodside Energy on Australia’s west coast.

The exploration push is welcome but more must be done to combat the destructive role being played by the Australian Greens and other climate agitators. Greens leader Adam Bandt has called for a halt to new fossil fuel developments, for liquefied natural gas exports to be restricted and for the provision of greater government support to transition industry and households off gas. Ms King has rightly said the Greens’ plan to cancel our longstanding LNG contracts with regional trading partners would trash our reputation as a stable investment destination and turn the lights off in countries that depend on Australian gas for their energy security.

The Greens in Queensland have said they will demand a ban on new coalmines and gas projects and an earlier shutdown of coal-fired power if they secure a balance of power in a hung parliament after the state election in October. The Climate Council has called for an immediate halt to gas exploration because “Australia, and the world, is increasingly being powered by clean renewable energy”.

The latest AEMO report shows just how out of touch the green extremists are. Electricity prices are rising and will continue to do so until order is restored to the supply and demand balance in the national energy market. Without gas, uncertain and intermittent supplies of renewable energy have shown themselves to be an unstable foundation on which to build the nation’s future energy security and affordability.