Victorians would need to find 25 times more gas under Andrews renewable energy plan

VICTORIANS would need to find 25 times more gas than it currently produces under the Andrews Government’s plan to rapidly increase renewable energy generation.

Victoria would need to find 25 times more gas than it currently produces under the Andrews Government’s plan to rapidly increase renewable energy generation. Generic picture: istock

VICTORIANS would need to find 25 times more gas than it currently produces under the Andrews Government’s plan to rapidly increase renewable energy generation.

The remarkable revelation, hidden in the economic modelling of the contentious VRET, predicts the plan would require a massive 2500 per cent increase in the amount of gas the state would need for energy generation.

It comes as Premier Daniel Andrews stridently defends his government’s position on a temporary ban on onshore gas extraction against a backdrop of warnings of a pending supply crisis.

The modelling — produced by leading consultancy firm EY — shows the amount of gas used in Victoria’s energy generation over the next 15 years would increase from between eight to 12 petajoules of gas to between 200 and 320PJ by 2033.

Energy experts and industry sources have labelled the government’s modelling as “puzzling”, “bizarre” and “very challenging”.

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Premier Daniel Andrews is stridently defending his government’s position on a temporary ban on onshore gas extraction. Picture: AAP/Lukas Coch

The Australian Energy Market Operator’s most recent Victorian Gas Planning Report found gas supply was projected to decrease from 420 PJ this year to 242 PJ in 2021 — an almost 50 per cent drop.

AEMO found only 107 PJ would count as available ­supply in 2021, which is under half what is projected for total annual consumption of 198 PJ in 2021.

“While Victoria’s daily supply is sufficient to meet peak demand, declining production is putting the supply demand balance at risk,” the report said.

It is understood much of the state’s gas would need to be imported from Queensland to fulfil future domestic needs.

The Australian Competition and Consumer Commission earlier this month estimated Victorian customers were paying $2 a gigajoule more for gas than in Queensland because of the cost of transportation.

Mr Andrews said this week there was not a problem with gas supply and there were sufficient levels for Victoria’s short and medium-term needs.

Federal Energy Minister Josh Frydenberg said Mr Andrews needed to explain where the extra gas would come from and how much it would cost consumers, given his “mindless bans on gas development”.

“No wonder the Premier has enthusiastically embraced building a gas import terminal because he knows the huge amounts of additional gas he needs to meet his renewable energy target,” Mr Frydenberg said.