Govt bans gas connections to new homes from 2024; Check details

Sydney: In a bid to reduce greenhouse gas emissions and promote energy efficiency, the Australian state of Victoria has announced a ban on natural gas connections to new homes from 2024. As the country’s largest consumer of natural gas, with approximately 80% of homes currently connected, Victoria aims to achieve net zero emissions by 2045.

Minister for Climate Action, Lily D’Ambrosio, stated that all new homes requiring planning permits must now connect to all-electric networks instead of gas. The gas sector is responsible for contributing around 17% of the state’s emissions.

By promoting electric appliances, the state aims to save residents money on their energy bills while working towards its long-term environmental goals.

The ban will also apply to all new public buildings, including housing, schools, and hospitals, that are yet to reach the design stage.

To support the transition to electrification, Victoria has launched several grant and training programs. These include an A$10 million ($6.7 million) initiative to lower prices for solar equipment and heat pumps, as well as an A$3 million package to train tradespeople on how to use new equipment.

The move comes after southeastern Australia faces potential gas shortages in the mid-decade due to declining output from offshore fields operated by Exxon Mobil Corp, which has been a major supplier to the region.

Last month, Australia finalized a set of rules for the domestic gas market, including a cap on wholesale prices that was introduced in December.