NSW Transition from Gas

May 1, 2024

So we have seen VIC and it's bold statements about transitioning from gas.

But what about other states? In particular NSW?

A few fast facts:

  • NSW homes use 30% of the state’s gas.
  • Commercial buildings use 18% of NSW’s gas.
  • Much of New South Wales’s gas (48%) is used to provide heat energy to spaces – such as living spaces – water and industrial processes
  • Households are trapped by escalating gas bills, which are fuelling a cost-of-living crisis
  • Gas price rises are not due to shortage. There is no shortage of gas. Australia is now the world’s largest liquefied gas exporter with three times more gas sent overseas each year than is used in Australia.
  • There's not yet a "ban on gas" like there is in Victoria.

How is it going to be done?

It's complicated and a little nuanced in the sense that gas developments have been government supported. This is an acknowledgement that gas will be an important step in our energy transition.

NSW government made a statement about this:

Future of Gas Statement

https://acrobat.adobe.com/id/urn:aaid:sc:AP:636002a5-9343-4914-acd9-a88b696ce384

What are the targeted reductions?

  • NSW gas consumption can be reduced by around one quarter between today and 2025; by more than two-thirds as soon as 2030; and entirely eliminated by 2050.
  • The solution is to combine energy efficiency with electrification, reducing energy use and using electricity.
  • The climate council is appealing to remove all planning rules that require new residential developments to be connected to gas, and phase out gas connections in new residential and apartment developments by 2025.
  • The climate council warns us of the commercial benefits to big gas producers, created by obstructing the transition away from gas.

https://www.climatecouncil.org.au/resources/path-zero-how-nsw-can-kick-the-gas-habit/#:~:text=Gas%20demand%20within%20New%20South,straightforward%20appliance%20upgrades%20and%20replacements.

A neat summary of the climate councils study is found here:

https://acrobat.adobe.com/id/urn:aaid:sc:AP:870c9324-32ba-46e2-82d5-9bf9e66b721f

The climate council did some interesting cost analysis of consumer transitions from gas to electric.

https://www.climatecouncil.org.au/resources/nsw-switch-and-save/

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