Australian electricity markets and natural gas markets are undergoing rapid reform. Choosing among electricity generation modes is a key issue. Such choices are affected by expectations about the future structure of these markets and future technologies, and how they affect costs and emissions. In the research reported in this paper, the MARKAL model of the Australian energy system is used to evaluate the competitive position of natural gas fired combined cycle gas turbines (CCGTs) in the energy sector as a whole. Competing in the sector are large-scale electricity generation technologies such as refurbished existing coal fired stations and advanced forms of coal fired generation. The modelling incorporates new data on electricity supply technologies and options.