Post by EnergyAustralia

Gas is becoming an insurance product.   You don't pay an insurance premium because you expect to claim every week. You pay it because when something goes wrong, a deep winter, low renewables, multiple days in a row, you need it to be there.   The LOR2 event in South Australia in February is a good reminder. Gas carried over half the supply at peak. That's not a failure of the transition - that's the transition working as designed.   Yesterday our Trading and Transition Executive Daniel Nugent was on the panel at Australian Energy Week exploring whether Australia is backing the right mix of firming tools.   His view: the right mix is a diverse mix. The real question isn't batteries versus gas versus pumped hydro. It's whether the market and policy settings keep all of them investable for the long run.