WA deals with shortage
Western Australia, a resource-rich state, is grappling with a dwindling gas supply.
Recent data reveals that WA received only 5 per cent of the planned renewable energy capacity for the past year, raising concerns about the feasibility of closing coal-fired power plants by the end of the decade.
The shortage is not due to the lack of gas reserves in the region but rather the challenges of production and supply meeting the growing local demand.
This predicament has prompted a two-pronged approach: reduce gas consumption or boost gas production.
Major resource companies and the state government are advocating for the latter, viewing gas as a transitional energy source as the region shifts from coal to renewables.
However, this transition occurs simultaneously with climate scientists' warnings against further fossil fuel development, including gas projects.
Despite plans to close coal plants, WA still faces significant emissions reduction challenges compared to other states.
The critical question is whether curtailing gas reliance is a viable option or if the state will remain dependent on this resource.
Last year, the Australian Energy Market Operator warned of a potential gas supply gap between 2023 and 2026, with a more substantial shortfall projected for the following decade.
Multiple factors contribute to this situation, including the planned closure of coal plants and significant changes in the energy grid to meet industry demand.
Industry leaders from Woodside and Chevron say there is a need to produce more gas to address the shortage.
Woodside's Liz Westcott pointed to the Scarborough gas project and warned of a possible long-term gas supply problem if delays occur.
Chevron also stressed the importance of investing in existing facilities to enhance energy security.
While the government acknowledges the need for more gas to meet growing electricity demand, they anticipate a shift toward renewable energy.
Nevertheless, gas is expected to play a vital role, particularly in stabilising the grid, given the intermittent nature of renewables.
Environmental scientist Peter Newman advocates for a different approach, focusing on transforming the energy grid from “dumb and dirty” to “smart and clean”.
He believes that smart energy storage solutions can reduce waste and improve grid efficiency, rendering increased gas use unnecessary.
The WA government is investing in battery technology but acknowledges that gas will remain indispensable for grid stability until hydrogen becomes a viable replacement.
Professor Newman disagrees with this approach, deeming it outdated and insufficient for addressing climate challenges. He insists on a more rapid transition away from gas and greater reliance on renewables.