The Victorian Government has introduced two significant pieces of legislation aimed at shoring up the state’s gas supply while supporting its transition to cleaner energy sources.
The move, announced on September 11, seeks to balance immediate energy needs with long-term sustainability goals.
The first Bill, the Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024, will permit offshore gas storage projects in Victorian waters.
According to the Victorian Government, this measure is expected to enhance supply security by allowing gas to be stored in empty offshore reservoirs, potentially boosting reliability during high-demand periods.
The second piece of legislation, the Building Legislation Amendment and Other Matters Bill 2024, paves the way for formal consultation on Victoria’s energy transition.
This Bill is particularly focused on exploring options for electrifying Victorian homes when existing gas appliances reach the end of their life cycle.
“Our new legislation paves the way for the development of offshore gas storage projects, to help secure gas supply while we cut gas demand by helping Victorian households electrify and save from day one,” Victoria’s Minister for Energy and Resources Lily D’Ambrosio said.
Importantly, the Victorian Government has clarified that current gas cooktops in homes, gas appliances in existing commercial buildings, and industrial facilities will not be affected.
The use of LPG will also remain unchanged. However, all new homes requiring a planning permit are already mandated to be all-electric, and the consultation will consider extending this requirement to all new homes and many commercial buildings.
Victoria, currently the largest residential gas user in Australia with two million households and businesses connected to the gas network, stands to benefit significantly from this transition.
The Victorian Government estimates that converting an existing home from gas to all-electric could save the average family $1700 per year, with potential savings increasing to $2700 annually if rooftop solar is added.
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