Energy Efficiency Council - Efficiency Providers | Energy Users | Australia

Efficient electrification and Victoria's gas transition

Forthcoming analysis undertaken by Climateworks Centre for the Energy Efficiency Council has found that efficient electrification of homes in Victoria has a critical role in freeing up gas for industry and dealing with gas supply shortfalls.

Figure 1: New analysis shows that energy efficiency and electrification could reduce Victoria’s fossil gas use by nearly 107 PJ annually to 2035 — a volume comparable to gas use for power generation across Victoria and Queensland. Switching to biomethane and hydrogen in industry delivers an additional 6 PJ of gas savings per year from now until 2035, which ramps up significantly after 2040. 

Figure 2: While electrification is expected to drive an extra 14 TWh of electricity demand, efficiency gains will offset much of this, resulting in only a 5 TWh net increase beyond normal growth by 2035.

Figure 3: Most of the potential for gas replacement through efficient electrification lies in the built environment, averaging 80 PJ per year, with a growing contribution from industry over time.

Figure 4: Residential buildings present the biggest opportunity — with efficient electrification driving a projected 64% drop in gas use between 2025 and 2035. This allows more time for decarbonisation technologies to mature in harder-to-abate sectors such as industry.

A policy brief setting out the findings of the analysis and policy implications will be released in coming weeks. For more information contact EEC Head of Policy and Research, Jeremy Sung.