Andrew Stock | New gas is not a sensible solution to Australia's energy mess

This warning is worth heeding, but the organisation's proposed solution - investing in increasing gas supply - is a pathway to never-ending high energy prices and more dangerous climate change.

Rather than reading AEMO's warning as an invitation to open up more polluting and expensive gas, decision makers need to look at the core of the problem: we need energy to power Australian homes and businesses.

Renewables backed by storage are a much better bet than gas.

Gas is a key culprit behind the energy cost crisis that is hurting Australian families right now, and it is also one of the biggest drivers of dangerous climate change.

Meanwhile, renewable energy drives down wholesale electricity prices and is the cheapest source of new generation.

Renewable energy is also less price-volatile, and less affected by global geopolitical factors than coal and gas.

We need to cut ties with gas, and go all-in on renewable energy, storage, and transmission infrastructure.

If we electrify our homes and businesses sourcing bulk energy from renewables, potential future gas shortages later this decade will evaporate in the face of lower demand.

And we cut our greenhouse gas emissions and power bills at the same time.

The good news is, we have all the technologies we need to help households and businesses ditch gas and unlock the country's renewable energy potential.

For families, switching out gas heaters and hot water systems for electric heat pumps and replacing gas stoves with electric or induction cooktops are easy solutions which can deliver immediate savings and additional health benefits.

An immediate step that the government can take to fast-track this switch is to offer interest-free loans to remove the cost-barriers that households may face in accessing efficient, all-electric appliances and energy efficiency upgrades.

However, even efficient, all-electric homes will remain exposed to high and volatile electricity prices from a grid linked to gas-fuelled power generators.

The only way to truly break free is to rapidly accelerate the deployment of even more renewables and storage - both at the utility and household scale.

Buildings with solar and batteries will dramatically reduce how much power they draw from the grid, driving down their own bills and exporting solar to the grid to help drive down power prices for everyone else.

Manufacturers can access a similar set of solar, storage and electrification solutions, as can many heavy industries.

Not all industries can get off gas immediately, but so many of them can and absolutely should.

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We can get ahead of the gas shortages predicted by AEMO by going all in on renewable energy, electrification, and energy efficiency.

The policies that can help accelerate this transition already exist, such as rebates and feed in tariffs to encourage households to adopt solar and storage.

Some states and territories are also providing low or no interest loans for home upgrades, while others are trying to bring clean energy to locked out communities such as renters.

Australia's renewables rollout is already in motion.

If we accelerate it, and couple storage, home electrification and energy efficiency, Australians can rest easy knowing that come heatwave or harsh winter, they will have an affordable, reliable and clean supply of locally generated renewable energy forever.