Space heating accounts for almost two-thirds of Victoria’s household gas use, water heating accounts for around one-third and cooking makes up just 4 per cent of total household use, according to research by Infrastructure Victoria.
Last year, the state government released a Gas Substitution Roadmap, which included plans to abolish regulations that mandate gas connections in new homes and retire incentives for the adoption of gas appliances.
The proposed $250 million Crib Point floating gas terminal that was rejected on environmental grounds.
But La Nauze said the plan fell short of establishing incentives needed to drive enough households to replace their gas appliances with efficient electric appliances.
“Right now, households are being slugged with massive disconnection fees for getting off gas and that must stop,” he said.
There are new gas projects proposed for Victoria. Viva Energy, owner of the Geelong oil refinery and Australia’s Shell and Liberty petrol stations, is awaiting environmental approval for its plan to extend a pier at the refinery site and park a floating vessel that holds super-chilled liquefied natural gas and turn it back into vapour for Victorian homes and businesses.
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The project faces resistance from environmentalists and some community members, who argue it is too close to residential areas and schools and fear it will damage Australia’s climate ambitions by extending the use of fossil fuels.
A similar AGL floating terminal project at Crib Point was rejected by the government because it would have unacceptable environmental effects.
The Australian Energy Market Operator has warned of changes to its expectations of available power supplies over coming years in Victoria, South Australia, NSW and Queensland, reinforcing the urgent need for new electricity generation plants – whether gas or renewable – and other key infrastructure to be approved and built.
Samantha McCulloch, chief executive of gas peak industry body APPEA (the Australian Petroleum Production & Exploration Association), said Victoria needs more gas, not less.
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“Victoria, in particular, urgently needs to bring on new gas supply to meet demand and to ensure its energy security because it is facing serious shortfalls and energy consequences as soon as 2023 for 2 million households and 70,000 businesses who already pay $2 per gigajoule extra when gas has to be transported from Queensland,” McCulloch said.
The Victorian government did not respond to a request for comment before deadline.
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