ACT budget funds homes and government buildings to ditch gas and in favour of electricity

The Labor government unveils plans to remove gas appliances from residential homes, schools, hospitals and offices.

Chief Minister Andrew Barr said the ACT was leading the nation when it came to emissions reduction and electrification, with the Territory becoming the first jurisdiction to be powered entirely by renewable electricity.

The ACT Labor government is accelerating its push towards electrification, unveiling a suite of measures to remove gas appliances from residential homes, schools, hospitals and government offices, in a move that has been criticised by the gas sector.

The ACT budget, handed down by Chief Minister Andrew Barr on Tuesday, pushes the Territory’s contribution towards the Sustainable Household Scheme to $280m, in a bid to assist Canberrans move off gas and upgrade their electric appliances.

It also includes $85m to electrify government buildings including schools, hospitals, emer­gency services and government offices by replacing gas heating and hot water systems with electric systems.

The budget – which forecasts a return to surplus by 2025-26 – also extends the Vulnerable Household Energy Support Scheme to provide community housing residents and low-income earners with financial support “to install energy-efficient insulation and replace gas appliances with electric alternatives”.

Australian Pipelines and Gas Association CEO Steve Davies warned the rush to electrify could drive up emissions due the increased reliance on the “already strained electricity network”.

“If the ACT government wants to reduce emissions, becoming even more reliant on NSW’s coal-fired generators is a strange way to do it,” Mr Davies said.

Gas Energy Australia’s Brett Heffernan said it was a myth that electricity is by default “cheaper and lower-emitting than gas”.

“Emissions from cheaper electrical appliances are actually higher than sticking with existing gas appliances,” he said.

“In NSW, the emissions increase in switching from gas to lower efficiency electrical appliances is 640kg per dwelling a year, and in Victoria it’s a whopping 960kg a year.”

However, Grattan Institute energy expert Tony Wood said the ACT was heading in the right direction, with many other jurisdictions watching the transition.

“It used to be that gas was cheap and plentiful, but it’s not anymore,” he said. “Also, the ACT government on the electrification side has always been very strong on renewables and they want to do the same thing with gas as well.”

Mr Barr said the ACT was leading the nation when it came to emissions reduction and electrification, with the Territory becoming the first jurisdiction to be powered entirely by renewable electricity.

“We are encouraging electric vehicle take-up and have legislated to ensure new suburbs are all-electric and zero emission.

“Our major government infrastructure (projects), such as the Canberra Hospital expansion, are fully electric-powered and heated – an Australian first.

“This budget also establishes a further step in our path to electrification with a rolling program of funding established to commence electrifying government-owned properties. And we are taking action in a way that brings the community with us with a further $80m for the award-winning Sustainable Household Scheme to continue to support households to improve their energy efficiency … and lower their cost of living.”