the age .com.au
So much for all that " Free Green Energy " ...Looks like the Bird-Killers are not doing so good after all !! ...Victorian cabinet is expected to discuss on Monday whether to adopt a proposal which would force homes to replace broken-down gas heaters and hot-water units with electric versions from as early as 2026.
In December, the Allan government released documents for consultation which favoured a new requirement for existing household gas appliances – excluding gas cooktops – to be switched to electric alternatives once they reach the end of their lives. All new residential and commercial buildings would have to be built all-electric, and would be required to fit electric stoves.
But three government sources, speaking anonymously to detail private conversations, said they believed the government was considering a compromise to the original policy.
They said options included altering the language to have a greater focus on “choice”, less restrictive bans and fewer appliances included.
A Victorian government spokesperson said it had already ruled out retrofitting existing commercial buildings and was working with industry on a response to the policy.
“Reducing household demand for gas will place downward pressure on bills compared to higher-cost gas being imported into Victoria,” the spokesperson said.
“Victorian gas is the cheapest in the nation. The longer we can rely on Victorian gas rather than imported gas, the better for Victoria’s industrial sector.”
The government has received submissions from industry, environmental advocates and other groups.
Victorian Automotive Chamber of Commerce chief executive Peter Jones told The Age that the building electrification proposal “threatens the foundation” of the industry.
“With approximately 4800 automotive businesses across the state relying on gas for their daily operations, this policy could force many of our members to either relocate interstate or shut down entirely,” he said.
“We’re looking at the real possibility of vehicle parts, trailer manufacturing and other industry moving offshore permanently – taking Victorian jobs with them.”
Victorian Trades Hall Council, Environment Victoria and the Victorian Council of Social Services have all made submissions supporting the plan.
In March, VCOSS chief executive Juanita Pope said electric homes were better for people’s health and that renters and low-income earners would need help to make the transition.
“Prioritising support for these households will mean that all Victorians can enjoy the health benefits and bill savings of electrification,” she said at the time.
Laundry Association of Australia chief executive Luke Simpkins said if the electrification program was implemented as proposed, it would eventually lead to higher costs.
“Everything will get passed through where possible,” he said.
The debate comes as information provided by ExxonMobil to the Australian Energy Market Operator in April, as part of regular communication on the state of its assets, shows its Turrum Phase 3 project has revised its estimated capacity upwards.
The project, which features a series of new Bass Strait wells, was announced in March, and the data shows it could now deliver 229 petajoules of gas over its lifetime starting from 2027, up from 137 petajoules originally expected.
The numbers are preliminary and will require more work to determine precisely how much gas will be delivered from the project.
But the upgrade raises the prospect that forecast shortages of gas in Victoria and NSW could be further delayed.
When the project was announced, it factored into AEMO’s calculations that pushed looming gas shortfalls back from 2025 to 2028.
Energy and climate ministers have been meeting for months to map out a way to shore up supply in Australia, with discussions including giving AEMO the power to be a long-time buyer of gas through import terminals.
AEMO’s executive general manager of system design, Merryn York, said AEMO was waiting for further information on the Turrum project to see if it should update its advice for the national gas system.
“Additional information has been provided to AEMO’s Gas Bulletin Board on gas reserves at the Turrum gas field, part of the Gippsland Basin Joint Venture (GBJV) between Esso Australia and Woodside Energy,” she said.
“We’re awaiting on further analysis from both parties to determine when the additional reserves could be produced and the impact this may have on other GBJV fields and projects.”
An Esso spokesperson said the company’s anticipated production remained consistent with AEMO’s road map.
“Esso Australia regularly reviews remaining gas reserves and periodically updates the Australian Energy Market Operator of any material changes,” the spokesperson said.
“While depletion of the Gippsland Basin is inevitable, projects like Turrum Phase 3 will ensure Bass Strait continues to produce gas for the domestic market past 2030.”
