EnergyEdge data show batteries supplied 49% of dispatchable power during August 2026 evenings, up from 0.4% in 2020, while gas fell from 65.9% to 20.6% in the same period, signaling a major shift in the generation mix.

Batteries have displaced gas for the evening peak (5pm–8pm) in Australia, with gas generation dropping 67% year over year to August 2026.

The shift is flattening the daily load curve, reducing volatility and potentially lowering prices, though it raises questions about gas profitability during rare, harsh winter conditions.

AEMO’s 20-year Integrated System Plan envisions gas playing a more strategic backup role, especially in winter and in southern states, alongside affordable, flexible generation and security services.

The article frames gas as transitioning to a less dominant future role, emphasizing the need to adapt planning and pricing models accordingly.

Wholesale electricity prices have declined, benefiting households but potentially impacting future investment in dispatchable power sources.

Experts caution that while the shift aids emissions and price stability, it could complicate ensuring reliable backup power during extended cold spells when solar and wind underperform and batteries cannot fully compensate.

Utility-scale batteries are absorbing surplus daytime renewables, reducing gas’s role during peak demand, according to Grattan Institute’s Alison Reeve.

AEMO data for April–June 2026 show gas generation at its lowest Q2 average in over two decades, with the downturn most evident during the evening peak and across regions.