The Victorian Government released its Gas Substitution Roadmap Update today providing a path to encourage transition from gas to electic appliances and for people to save on energy bills. It argues that Rapid electrification is critical to lowering bills and emissions, and maintaining reliability. Also includes updates to minimum rental standards to cover ceiling insulation, draught sealing and cooling standards.
As gas prices continue to rise, the Allan Labor Government is helping Victorians reduce their reliance on expensive fossil gas – easing the cost of living pressures on families and businesses.
Minister for Energy and Resources Lily D’Ambrosio said “We’re ensuring Victorians aren’t locked into expensive fossil gas prices and sky-high energy bills for decades – helping them switch to efficient electric appliances that will deliver significant bill savings.”
“We’re also helping renters save money on their energy bills through new minimum energy efficiency standards that include better insulation and efficient heating and cooling, meaning comfortable homes that are cheaper to run.” said D’Ambrosio.
Existing households going all electric can save up to $1,700 a year, or up to $2,700 a year with solar installed – a 60 per cent reduction in energy bills.
As the Bass Strait gas fields decline, Victoria needs to transition from using gas to electric. Gas prices have also been pushed up by the establishment of LNG processing trains for export in Queensland, linking domestic gas prices to the international market. Succeeding Federal Governments have failed to establish a domestic gas reservation policy allowing gas producers to export gas through the LNG terminals for much greater profit.
Victoria has set renewable energy targets of 65 percent renewables by 2030 and 95 percent by 2035 to replace the ageing coal plants and to cover electrification from gas use. This includes new offshore windfarms which have a higher capacity factor than onshore wind farms. here is what the renewable energy present and future trend line looks like.
Cooling standards for Renters
The government is well aware of Costs of living on renters, often in poorly insulated summer hot houses / winter chillers that burn through money on heating, while roasting people inside during summer heatwaves.
The Government will help deliver bill savings for renters with a review of the minimum energy efficiency standards for rental homes, with public consultation to kick off in 2024. This will include ceiling insulation, draught-sealing, hot water, heating and cooling, providing renters with more comfortable homes that are cheaper to run..
The government is moving to expand minimum rental standards to cover ceiling insulation, draught sealing, hot water and cooling according to the Gas Substitution Map Update:.
The Government is also continuing to ensure renters, who have less control over the energy performance of their homes, are not locked into unnecessary costs. Victoria was the first jurisdiction in Australia to introduce minimum energy efficiency standards for rented homes, commencing with a heating standard in March 2021. The Government is now moving to expand these standards to cover ceiling insulation, draught sealing, hot water, and cooling.
Expanded minimum energy efficiency standards will support rental affordability by addressing key drivers for energy use and costs in approximately 500,000 rented homes while also improving the worst performing rental properties, benefiting renters through lower energy bills and improved thermal comfort (with associated health benefits). Modelling carried out by DEECA indicates that new standards for ceiling insulation would save renters around $387 per year, a draught sealing standard $37, hot water $205 and cooling $153 a year.
These standards will also improve health outcomes and ensure rented homes are more resilient to the changing climate. Options for the new standards will be tested through a regulatory impact statement and public consultation process during early 2024.
Gas Substitution Update, 14 December 2023
Key Policy actions supporting electrification
The Minister’s forward to the Gas Substitution Roadmap update outlines Key policy actions supporting the electrification of Victoria’s homes and businesses to be delivered over the
next stage of Victoria’s decarbonisation journey including:
- The SEC exploring options for a trusted ‘one stop shop’ to assist Victorians to navigate the home electrification process, with pilot household solutions starting from 2024.
- Investigating options to progressively electrify all new and existing residential and most commercial buildings (including through a regulatory impact statement and public consultation).
- The same regulatory impact statement will consider the costs and benefits of requiring existing gas appliances in homes and relevant commercial buildings be replaced with electric appliances when the current appliance reaches end-of-life.
- Expanding minimum standards to cover ceiling insulation, draught-sealing, hot water and cooling following public consultation on implementation options in early 2024 to continue protecting renters from higher energy bills and the health risks of inefficient homes.
- Expanding the Victorian Energy Upgrades to include incentives for upgrades to efficient electric cooktops, enabling all Victorians to fully electrify their homes through Victorian Energy Upgrades.
Biomethane and renewable hydrogen production is also being scaled up across the state, to reliably power Victoria’s manufacturing and industrial sectors while establishing new industries and job opportunities. The roadmap articulates that there is extensive and rigorous research from dozens of independent studies around the world that concludes renewable hydrogen or biomethane should not be used for residential applications, such as space heating, hot water heating, and cooking.
Energy Efficiency, electrification replacing Fossil Gas
The original Roadmap published in 2022 outlined a pathway for Victoria to reduce its reliance on fossil gas while maintaining reliable supply and keeping downward pressure on prices, by relying on:
- Investment in energy efficiency and electrification to replace gas where electric alternatives are readily available, particularly in residential and commercial buildings, and removal of barriers to all‐electric homes.
- Development of renewable gases (biomethane and hydrogen) for remaining, largely industrial gas uses where electrification is likely not a feasible option.
- Decisive action to maintain reliability and affordability of gas supply through the transition.
References
Premier of Victoria, 14 December 2023, Gas Substitution Roadmap Charts Path To Lower Bills, https://www.premier.vic.gov.au/gas-substitution-roadmap-charts-path-lower-bills
Victoria’s Gas Substitution Roadmap, 14 December 2023, https://www.energy.vic.gov.au/renewable-energy/victorias-gas-substitution-roadmap
Climate Action Merribek 
[…] Some jurisdictions are already starting to act. The ACT has a requirement for ceiling insulation in rental homes, and Victoria is looking to expand their existing standards to include cooling. […]
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