Bowen signs deal to help the ACT electrify everything, share lessons with rest of Australia

The federal and ACT governments have signed a deal to collaborate on a range of pilot projects and “practical actions” to bolster the territory’s nation-leading efforts to electrify its homes, businesses and vehicles.

The funding deal, known as a Renewable Energy Transformation Agreement (RETA), commits federal Labor to support “priority areas” of decarbonisation for the ACT that also support the national energy transformation.

The ACT, which achieved its 100% renewable electricity target in 2020, is well ahead of the rest of Australia on electrification and energy efficiency, having turned its focus to driving fossil fuels out of homes and businesses – and cars – while also driving down consumption.

The ACT government’s Sustainable Household Scheme, launched in September 2021, has been a huge success, providing around $170 million worth of interest free loans to homes across more than 13,000 participant households (as of July 2023), accounting for nearly 10% of all eligible households across the Territory.

It was also Australia’s first state or territory to make changes to legislation to help phase gas out of homes and, in 2018, started developing its first “gas free” suburb.

The federal-state collaboration will focus on bolstering the ACT’s efforts in the acceleration of vehicle-to-grid capabilities, the electrification of complex buildings, building energy performance improvements, and electrification of private lower-income households and of public and community housing.

Lessons learned through these programs will be shared and used to inform future projects across Australia.

The two governments have also committed to a range of practical actions to improve community engagement and drive better social and economic outcomes from the renewable energy transformation.

“Today’s agreement will support not just the ACT’s clean energy and net zero future, but Australia’s,” said federal energy minister Chris Bowen on Thursday.

“The innovation and expertise that will drive the electrification of homes, businesses and vehicles across the Territory will also help us provide reliable renewable energy across Australia,” Bowen said.

“The ACT has long been a leader in climate action. We have committed to phasing out fossil gas by 2045 and are progressing well on our journey to electrify our city, improve energy efficiency and deliver a just transition,” said ACT energy minister Shane Rattenbury.

“This new agreement will ensure we continue to lead as we accelerate the electrification process and boost efficiency, including in apartment complexes and in public housing, and as we trial new technologies to support an efficient, all-electric city.”

The ACT RETA deal is the third signed by the federal government, following earlier agreements with South Australia and Western Australia in July. Bowen says negotiations continue with other states and territories.