The recent announcement by the Victorian government to transition new homes requiring planning permits from 1 January 2024 has stirred discussions within the energy sector. While this decision is driven by the challenges of global gas costs and supply uncertainties, it’s essential to view it in the context of the broader energy landscape.
Key Points to Consider:
* The change is only for homes requiring a planning permit in Victoria from 1 January 2024 onwards, including new public and social housing delivered by Homes Victoria
* The change only applies to new Natural Gas connections.
* Commercial and Industrial sectors are not impacted by this change unless a planning permit is required such as for a mixed domestic/commercial dwellings.
* Propane remains unaffected.
* The Victorian government has not closed the door on green hydrogen’s potential in the future.
* Over 5 million homes in Australia are connected to the Natural Gas network.
* Over 2 million homes in Victoria, which is more than 80% of all residences, are connected to the Natural Gas network.
The gas industry has already established a plan to transition to green hydrogen, which is a sustainable energy source that produces zero carbon emissions (See our May 2022 NewsFlash). Significant advancements have been made in this direction nationally and internationally, showcasing the viability and potential of green hydrogen as an important energy source.
AGA is engaging with Energy Networks Australia (ENA), the leading national body representing Australia’s electricity and gas distribution network operators. ENA’s research into green hydrogen suggests a promising trajectory for this sustainable energy source. ENA’s insights highlight the development of hydrogen-ready appliances, indicating a shift towards more sustainable energy consumption in residential settings. CLICK HERE to access the ENA publication.
While the Victorian government’s decision is a step towards a cleaner energy future – potential new dwellings may face challenges if connection to green hydrogen is unavailable. The vast potential of green hydrogen as a cleaner, more sustainable energy source underscores the importance of ensuring that new homes are not inadvertently excluded from accessing this emerging energy solution.
In light of the above, the transition in Victoria’s energy policy presents both challenges and opportunities. A balanced approach that acknowledges the potential of green hydrogen will ensure a sustainable and inclusive energy future benefitting all Victorian consumers.