In each of the first four months of 2026, demand for coal and gas was pushed to all-time lows in Australia’s largest electricity grid, as the roll-out of wind, solar and batteries drove demand for the fossil fuels to levels not seen before in this century.
Overall demand for electricity either exceeded or neared monthly record highs in each of the first four months of this year. Meanwhile, in all four demand for power from gas and coal generators reached levels not seen in the time since the creation of the National Electricity Market in the late 1990s. The steady shift away from coal and gas toward renewable energy is the dominant trend that has occurred in Australia’s main electricity markets.
“Relatively speaking, demand for gas has dropped twice as fast as demand for coal in the past decade. Yet political leaders continue to use the strictly limited and very rapidly declining role of gas in the power sector to justify gas exploration and production approvals with decades-long time horizons,” said Tim Baxter, founder Naru Research. “More and more gas extraction is simply not needed to support Australia’s energy transition. These justifications are a furphy.”
Last week, New South Wales Premier Chris Minns tried to justify a decision to allow unconventional gas exploration in his state’s west citing the need for gas to firm renewables in Australia. This time last year, Prime Minister Anthony Albanese attempted the same spurious argument to justify a 40-year extension to Woodside’s North West Shelf gas export plant.
“The role of coal and gas in Australia’s grids is declining far faster than expected. Unexpectedly, this is hitting demand for gas generation even harder than it is hitting coal. This trend will only accelerate as gas generation is pushed further to the margins by batteries and other zero
emissions solutions,” Baxter said.
The federal government’s Cheaper Home Batteries Scheme recently had its most successful month ever, and to date 10 GWh worth of batteries have now been installed under it in less than a year. For comparison, across Australia’s largest grid gas powered generation in the first four months of 2026 averaged 16 GWh per day. As battery rollout continues, the already low volumes of gas being consumed by Australia’s largest grid will fall further and faster.
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About the data
The data referred to in this release is available to view or download here. It can also be independently cross-checked at Open Electricity here.
About the National Electricity Market
While it is by far Australia’s largest grid, the National Electricity Market is not truly national. The NEM connects almost all demand for power in Victoria, Tasmania and the Australian Capital Territory. and the major populated areas of New South Wales, Queensland and South Australia. Over 85% of Australia’s generation occurs within the NEM, with separate smaller grids providing power to southwestern and northwestern Western Australia, Darwin, Katharine and surrounds in the Northern Territory and Mount Isa and surrounds in Queensland.
About Naru Research
Naru Research is a research consultancy committed to integrity and accountability through Australia’s climate and energy transition. Naru works with people seeking to shape the climate and energy transition for the better.