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Reliability2026-10-12· GNews: RenewEconomy

State Labor sees “primary” role for gas-fired power in latest firming tender for 1.5 gigawatts - Renew Economy

A state Labor government has opened a tender for 1.5 gigawatts of firming capacity and flagged gas-fired power as playing a "primary" role in meeting the requirement. The tender seeks dispatchable generation to support a grid increasingly reliant on variable renewable output.

Where this fits

This is the grid admitting what Energy Realism tracks: a renewables-only system cannot run without firm backup, and that backup is gas. The tender reveals the real cost structure of the transition. Solar and wind are cheap per megawatt; the system cost lies in firming, transmission overbuild, and the infrastructure to manage weather-dependent supply. Gas fills that gap today because nuclear is banned by law. The decision to use gas rather than pursue firm, low-emission alternatives locks in ongoing fuel costs, supply-chain dependence on LNG importers, and continued emissions from a generation source chosen not for merit but for regulatory default.

What it means

Australia is building a grid that requires perpetual gas spending to function reliably. Each gigawatt of firming tender is a bet that gas will remain cheap and available; neither assumption is safe. A firm generation fleet, whether gas, coal, or nuclear, is the backbone of grid stability. Australia has chosen gas over the only low-emission firm alternative available, locking in fuel volatility, import exposure, and higher lifetime system cost. The tender does not signal a problem to be solved; it signals a structural dependency that will define the grid's economics and resilience for decades.

By the numbers

Taking the article's figure of 1.5 gigawatts, at indicative Australian build costs:
What it costs to buildA$900m–A$1.5bn

at ~A$600–1000/kWh installed. Source: BNEF, CSIRO GenCost 2024-25. Indicative.

What it actually stores~0 hrs

of average national (NEM) demand if fully dischargeable, then it needs recharging. Storage shifts power, it does not generate it.

Critical minerals it consumes~2,970 t

lithium, graphite, nickel, copper and cobalt (~150 t lithium content). Replaced roughly every 12 years. Source: IEA, Argonne GREET. Indicative.

Money into China's economyA$675m–A$1.1bn

~75% of cells are China-made. Source: IEA cell-manufacturing share.

The same money in nuclear0.1–0.2 GW

enough for 1–1 TWh a year of firm, always-on power, generating for ~60 years. Source: CSIRO GenCost 2024-25 (A$8.5–13.2bn/GW), IAEA capacity factor.

Figures are indicative conversions from the article's stated quantity using published cost, material and capacity factors (CSIRO GenCost, BNEF, IEA, IAEA). Ranges, not precise forecasts.

Go deeper on the numbers

The bigger picture

Energy security is national security. This connects to the wider case at Unprepared: Australia's dependence on a strategic rival, and how ready it is for the world that is coming.

Reported by GNews: RenewEconomy. Read the original report ↗

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The numbers, as they move

A short, sourced brief when the figures shift: a transmission blow-out, a supply-chain move, a milestone.

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