Far from being a competitor, gas is complementary to renewable energy. Last year was a record year for new renewable capacity installed in Australia. The Clean Energy Regulator reports that 6.3 gigawatts of new renewable capacity was installed in 2019. This is 24 per cent above the previous record of 5.1 gigawatts installed in 2018 and more than double the National Electricity Market's largest coal generator, Eraring, in NSW.

The Clean Energy Regulator has recently reported that Australia's uptake of renewable energy looks set to remain at record levels in 2020, demonstrating the resilience of the energy sector in the face of COVID-19. Australia's rooftop solar sector is delivering increased capacity of 33 per cent year-on-year, with the CER not detecting a slowdown due to the pandemic – an extraordinary achievement.

With industry analysis confirming investment confidence is at its highest levels, even more renewable capacity is expected to enter the market.

We need to be prepared to back-up this intermittent growth to ensure the lights stay on when the sun isn't shining or the wind isn't blowing. Intermittent renewables need a partner and, in the words of our Chief Scientist Dr Alan Finkel, “gas is effectively the perfect complement to solar and wind”.

The South Australian grid provides a great example for this partnership. As gas generation has increased in South Australia to support the increasing renewables capacity, emissions have continued to fall. They are now less than half of the National Electricity Market average.

Fast-start gas generation can help to quickly fill the gap in drops in renewable output – some as quickly as five minutes. With one in four Australian homes now choosing to install solar panels, we will need more of this gas generation – along with pumped hydro and batteries – to ensure the lights remain on and prices remain low.

Indeed, gas is not just important for reliable power. The role of gas extends well beyond this – it provides chemical feedstock and energy for crucial manufacturing such as plastics for PPE and crucial fertiliser for farmers. And until we can reduce the cost of low-emissions hydrogen to our target of under $2 a kilogram, there are few commercially viable alternatives.

Gas is part of our plan to reduce emissions without imposing new costs on households, while at the same time creating jobs, growing businesses and the economy. The pandemic has hit Australians and our economy hard. Gas will help us bounce back better and stronger, support our growing renewable capacity and deliver the reliable and affordable energy Australians deserve.

Angus Taylor is the Minister for Energy and Emissions Reduction.