Energetics' General Manager - Energy Markets, Gilles Walgenwitz, appeared on ABC's The Business, Thursday 2 June to share his insights on the drivers behind the sharp escalation in energy prices seen recently across the markets. Gilles said that without enough renewables capacity in the grid to make up the shortfall, local coal fired power station outages were also pushing up gas prices.
"We have about six gigawatts of coal capacity missing in Queensland, six gigawatts in New South Wales. That's huge, when you compare to the total capacity normally available," he said.
"And so, we have much more gas power generation coming into play to meet the demand and it happens that at the same time, the price of gas is extremely high."
Please watch 'ABC The Business' segment below, or read the full article 'Australia's gas crisis is worse than you might think. Industries warn thousands could lose their jobs and consumers will pay more' on the ABC's website.