Australian evening power peak sees gas use drop nearly 70% as batteries surge
Gas-fired generation during the 5 pm-8 pm peak fell by about 67% over the year to August, while batteries supplied almost half of dispatchable power.
A consultancy report finds that gas generation in Australia’s most stressed evening window (5 pm-8 pm) dropped by 67% in the year ending August, as utility-scale and residential batteries came online in large numbers. The surge in battery capacity, driven by a subsidy program that installed half a million home units, led to a record peak output and now covers 49% of the grid’s dispatchable demand, compared with just 0.4% in 2020.
Consequently, gas’s share of evening power fell from 65.9% to 20.6%, and wholesale prices declined, benefiting consumers but potentially discouraging new dispatchable projects. Analysts say batteries are flattening the daily load curve and reducing system volatility, though gas will still be needed as a backup during winter weeks when renewable output is low. The Australian Energy Market Operator’s data confirm the lowest gas generation in a Q2 period in more than two decades, reinforcing the trend toward battery dominance at peak times.
Why it matters
The shift reduces electricity costs for households and reshapes the role of gas in Australia's energy mix.
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