The report reveals that while total power generation in the National Electricity Market was 3% higher in July than June, electricity from gas-fired plants rose 16%.

Power generation from hydro was also up 30% while coal-fired generation fell 2%.

The EnergyQuest report also documents the amount of investment in Australian LNG projects.

EnergyQuest chief executive Dr Graeme Bethune said the carbon tax’s introduction was not the only change affecting fuel used for power generation in June and July.

“However, despite generation from the Yallourn power station being interrupted and wind generation falling in July, the introduction of the carbon tax does appear to have increased the use of cleaner fuels as was expected,” he said.

South Australia led the gas generation way but there was also significant gas use growth in New South Wales. NSW and Tasmania also recorded growth in hydro use.

The use of coal for power generation was largely flat, except in SA where it fell 82%.

Overall the amount of gas used for power generation was 3.1 petajoules higher in July than in June – an 18% increase.

For the 2011-12 financial year total electricity generated in the NEM fell 2.4% with gas use for power generation falling from 211PJ in the previous year to 200PJ.

Wind generation increased by 17%, contributing 3% of NEM power generation but 128% in SA.

Solar photovoltaic generation is also growing quickly. It rose 52% between the June quarters of 2012 and 2011.

EnergyQuest’s findings are similar to pitt&sherry’s latest Carbon Emissions Index update.

It too found electricity demand had fallen.

More significantly, though, was its finding that coal-fired generation was 1.4 terawatt hours lower in the year ending July 2012 than it was in the year ending a month earlier.

The decrease was larger than the decrease in total demand.

According to CEDEX the difference was made up by increases in both gas and hydro generation.

On the LNG boom, Bethune believes the good times are just starting to roll.

“There are currently seven LNG projects under construction with total investment of $176 billion, comprising two-thirds of total resource sector investment in Australia,” he said.

“Construction of five of those LNG projects has only commenced since the start of 2011 and while there is concern about the implications of falling iron ore and coal prices for mining investment, LNG revenues are linked to oil prices, which remain at historically high levels.”

The report found Australian oil production fell 10.4% in 2011-12 but is increasing in the Cooper Basin, which is producing as much oil as some major Carnarvon Basin fields.

Notwithstanding the Pluto start-up, gross Australian LNG production fell 9.8% in 2011-12 to 18.7 million tonnes, which was mainly down to plants being offline for maintenance.

Domestic gas production fell 1.2% to 1067PJ, flat on the west coast and down 1.7% on the east coast.

Not surprisingly, Santos was the largest domestic gas producer for the fiscal year just past.

Gas development in NSW remains on hold pending resolution of government policy.

Only one well was drilled in 2011 and there have been none in 2012.

Total Australian petroleum production fell 6.3% in 2011-12 to 484 million barrels of oil equivalent.

Once more the big Australian was the biggest petroleum producer. However, BHP Billiton’s production fell 14.3%.