03/03/2026
Excellent explanation of the dilemma we are facing on power supply at the latest Energy Facts & Fiction breakfast hosted by CRE Insurance in the iconic Tattersalls club in Brisbane.
Stephen Wilson and Ben Beattie spoke about the current state of the power market, particularly “baseload” power and the concept of the “vanishing middle.”
A few things stood out:
• Traditional baseload power is fading, but we still need power that can be turned on whenever it’s required.
• As coal plants close, the grid loses important supply stability services, and those services have to be replaced.
• The market is splitting into very cheap renewables when the sun shines or wind blows, and high-priced peaking power when it doesn’t, leaving fewer viable options in between and a power market that does not work in its current form.
• Renewables have received strong policy support and subsidies, but the extra costs of making them work at scale (backup supply, transmission and storage) don’t disappear. They’re just picked up elsewhere in the system.
• This makes flexible gas generation more important in keeping the system stable.
Our take? This isn’t really a “renewables vs gas” debate. It’s about how the grid actually works.
If we care about reliability, stable prices and keeping industry competitive, flexible domestic gas still has a key role to play.
Thanks to CRE for hosting these enjoyable and informative events.