Phasing out unabated gas generation

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Government should phase out unabated gas fired generation so that it generates less than two per cent of electricity by 2035, and prevent unabated gas power stations from operating in the wholesale, balancing and capacity markets by 2040 at the latest. Actions to deliver this should include:

  • ensuring that carbon capture and storage enabled and hydrogen fired electricity generation stations deploy ahead of unabated gas power stations, through a combination of carbon pricing and emissions limits on new and existing unabated gas power stations
  • shortening the length of future capacity market contracts for unabated gas power stations from the 2025 auction round, ensuring that these contracts do not extend beyond 2040, allowing the Independent System Operator to turn on unabated gas power stations ‘in extremis’ to ensure security of supply.

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