Australia Sees Record Low Gas Power Generation
Gas-fired electricity production dropped to its lowest third-quarter average in over 25 years during 2026.
Updated on Oct. 23, 2026 in Oil and Gas
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Natural gas power generation in the National Electricity Market averaged 881 megawatts during the third quarter of 2026. This figure marks the lowest quarterly average since 2000.
Why it matters
The shift highlights a changing energy landscape in Australia as grid operations rely less on traditional gas-fired power. This trend follows an increase in battery capacity across the national grid.
Gas power generation in the National Electricity Market reached an average of 881 megawatts in the third quarter of 2026, representing a record low for the period over the last 25 years.
The details
The decline in gas usage is directly linked to the expansion of battery capacity throughout the National Electricity Market. As these energy storage systems become more integrated, the necessity for gas-powered electricity has decreased.
Timeline
The previous low for third-quarter average gas generation was recorded in 2000.
The most recent data covers the third quarter of 2026.
Market Landscape
This decline follows the long-standing market benchmarks established in 2000 for the Australian electricity sector. It signals a shift in the energy mix as grid operators prioritise alternative storage solutions over gas-fired production.
For energy consumers, the reduced reliance on gas could influence wholesale electricity prices and long-term grid reliability. Households may notice these shifts reflected in the changing composition of their energy supply over time.
The takeaway
The move toward battery storage is actively reshaping how Australia meets its electricity demands. Residents should expect these infrastructure changes to continue influencing utility supply patterns in future quarters.
Further reading
Learn more about the evolving energy sector in Australia Oil and Gas.
Source note: This article includes information reported by Bloomberg Business.
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