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The Benefits of Gas Peakers for New South Wales

27/2/2025

As New South Wales continues its transition toward renewable energy, the state’s electricity system faces the challenge of balancing reliability, affordability, and sustainability. While wind and solar provide low-cost, zero-emissions power, they cannot always generate electricity when it is most needed. This is where gas peaking power plants — or “gas peakers” — play a vital role.


Gas peakers are designed to operate flexibly, starting up quickly to supply electricity during periods of high demand, extreme weather, or when renewable generation is low. Unlike coal-fired plants that run continuously, gas peakers are only used when required, making them efficient and cost-effective tools for ensuring system stability.


For households and businesses across NSW, this means greater confidence that the lights stay on even during the hottest summer evenings or cold winter mornings. By supporting renewables, gas peakers help to keep electricity affordable and prevent reliance on imported power from other states.


Gas peakers also provide critical grid services — such as frequency control, inertia, and system strength — which are increasingly important as more synchronous coal units retire. Their ability to respond within minutes helps the network operator manage sudden changes in supply and demand.

Importantly, modern gas peakers are being designed to use lower-emissions fuels and adapt to a cleaner future. Many new projects include pathways for hydrogen blending or conversion to 100% renewable fuels over time. This ensures that today’s investments in reliability are aligned with tomorrow’s decarbonisation goals.


Gas peakers are complementary technology that allows NSW to move forward with confidence. By filling the reliability gap left as coal retires and renewables grow, gas peakers provide the firming capacity needed to secure a clean, affordable, and dependable energy future for the state.

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