To facilitate this transition, AEMO projects a need for 13 gigawatts of new gas-fired generation over the next 25 years to support the renewable rollout on Australia's east coast.

As electricity demand rises due to population growth and technological advancements, the importance of transitioning to renewable energy becomes increasingly clear.

Notable price spikes occurred in various regions, including Victoria in January 2019 and Queensland in May 2021, due to unplanned outages at coal generators.

In response to these challenges, AEMO and CSIRO advocate for a transition to renewables, supporting the use of batteries and gas generation to provide backup during peak demand.

By 2030, coal-fired generation will be phased out in Western Australia, replaced by renewable energy supported by storage and gas.

More than half of Australia's coal-fired generators are over 40 years old, nearing the end of their operational life and facing declining reliability.

With coal generators typically having a lifespan of 40-50 years, significant closures are anticipated by 2035, as reported by the Climate Change Authority.

A recent analysis by Baringa Partners highlights that Australia's ageing coal plants are becoming less dependable, underscoring the urgent need for investment in replacement energy sources, particularly renewables.

The Climate Change Authority emphasizes that transitioning to renewable energy can significantly reduce emissions and prepare for the retirement of ageing coal generators.

In line with this shift, AGL has announced plans to accelerate the closure of older coal plants like Loy Yang A and Bayswater, both of which are turning 40 this year.

The Climate Council's analysis indicates that outages from coal power are a major cause of power shortages, particularly during summer, leading to significant price spikes in electricity.

Currently, older coal generators are operating at only 65% of their potential, compared to 81% for younger coal plants, indicating a marked decrease in efficiency.