PERTH (miningweekly.com) – The Victorian government has announced a landmark decision to phase out gas in new homes, drawing criticism from the industry.

From January 2024, planning permits for new homes and residential subdivisions will only connect to all-electric networks, with houses taking advantage of more efficient, cheaper and cleaner electric appliances, the government said on Friday.

These changes will apply to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria.

Starting immediately, all new public buildings that haven’t reached design stage will also be all-electric. This includes new schools, hospitals, police stations and other government-owned buildings.

“We know that with every bill that arrives, gas is only going to get more expensive. That’s why we’re stepping in to help even more Victorians get the best deal on their energy bills,” Energy and Resources Minister Lily D’Ambrosio said on Friday.

“Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more Victorians on more efficient electric appliances which will save them money on their bills.”

The Victorian government will be investing A$10-million in a new Residential Electrification Grants program, which will be available to volume home builders, developers and others to provide bulk rebates for solar panels, solar hot water and heat pumps to new home buyers upfront.

The Australian Petroleum Production & Exploration Association (Appea) said that the ban on gas for new homes ignored the fundamentals of the energy system transformation to net zero, including the importance of gas as a partner to renewables.

Appea said the Victorian government’s policy shifted the burden to consumers, pushing households onto an already strained coal-based electricity grid and ignoring the urgent need for new local gas supply to reduce emissions and put downward pressure on prices.

“With more than 60% of Victoria’s electricity coming from coal, the focus should be on reducing emissions from the power sector, through renewable energy and firming gas power deployment, before adding to power demand,” Appea CEO Samantha McCulloch said.

“The Victorian government is taking choice away from consumers for limited climate benefit while ignoring the fact that the best way to bring gas prices down is to invest in more gas supply.

“Victorians are paying at least $2/GJ more whenever gas is imported because the state has outsourced its energy security to Queensland by stifling onshore development for a decade with regulatory uncertainty and gas exploration bans.”

McCulloch said Victoria should be heeding the calls of the Australian Energy Market Operator, which recently warned the state needed “substantial volumes of gas” to avoid shortfalls in coming years because it was relying on Queensland.

“The best way to avoid shortfalls and put downward pressure on prices is to bring on new gas supply close to where it is used because the cheapest gas is the gas closest to the customer,” she said.

“We need to ensure policy is based on robust, evidence-based analysis that recognises the importance of gas in supporting the transition of our energy system to net zero.”