Sydney gets ready for fossil gas ban, seeks views on how best to electrify homes, business

The City of Sydney has moved a step closer to banning gas connections in new homes and businesses, with the launch of a discussion paper to guide the process of changing local government planning laws to support electrification.

The paper sets out a path for most new development in the City of Sydney to be all-electric, “with no reliance on fossil gas,” while also seeking feedback on how best to do this, what challenges need to be overcome – and whether any industries should be exempted from a future gas ban.

Options include requiring appliances to be electric in new residential developments only; extending these controls to electrifying hot water systems in new residential buildings; only electrifying appliances and systems in new commercial, industrial and business developments, or expanding this to cover major refurbishments of existing buildings.

“There are a number of possible steps we could take in order to help our community move away from gas but it is vital we fully understand the impacts for our residents and industry,” Sydney Lord Mayor Clover Moore said on Tuesday.

“We want to know if people agree with the benefits of electrification, whether certain industries should be exempt, the approach preferred and any potential challenges to overcome we haven’t flagged in our report.”

The City of Sydney, in August 2023, voted to insert new clauses into the council’s planning rules to require new homes and businesses, including apartments, to include all-electric appliances like stoves, cooktops, heaters and hot water units, instead of gas ones.

The motion was moved by councillor Emelda David in response to the “Electrify Your Council” campaign led by 350 Australia, which calls on local governments to use their “unique planning powers” to lead the state in ditching residential gas.

The 350 Australia appeal to councils was launched into the void of state government electrification policies, after New South Wales Labor premier Chris Minns said in 2023 that a residential gas ban was not on his government’s current agenda.

An increasing number local NSW councils have been using their own planning powers to ban new gas connections, including the Parramatta and Waverley councils and the Lane Cove and Newcastle Councils, while others – like Sydney City – are getting the process underway.

The use of gas in households in NSW is not nearly as high as it is in Victoria, where the state Labor government last year introduced new rules preventing new homes and residential subdivisions from connecting to gas networks – the first stage of a broader legislative process to wean homes and businesses off the fossil fuel.

But the City of Sydney says residential gas use is disproportionately high in its local government area (LGA) accounting for nearly half of total gas consumption, despite residential buildings representing only 25% of total energy usage.

“This is largely due to the reliance on gas for domestic hot water heating. With a significant portion of new developments each year being residential, there is a valuable opportunity to target this sector with the potential policy,” the discussion paper says.

Efficient electric appliances, the report says, are better for the environment, cheaper to operate and contribute to improved air quality by reducing pollutants compared to gas burning options, which is better for human health.

The paper also notes that allowing new buildings to connect to the gas network and use gas appliances clashes with the City of Sydney’s net zero by 2035 target – and also makes little sense in light of the state’s target of net zero by 2050.

“As the NSW government has not yet committed to all-electric new development, we must take on a necessary leadership role in developing a clear stance on the use of gas in new developments,” the paper says.

“Allowing new fossil fuel gas connections only increases the transition challenges for building owners and energy users in the future.

“By providing clarity in the planning and regulatory framework we can help the community including builders, developers, gas fitters, electricians and suppliers in planning for electrification,” the paper says.

“A clear planning and regulatory framework for all-electric development would also aid electricity and gas network operators with forecasting and to manage their systems cost-effectively to meet our future energy needs.”

For consumers, as a new report from Rewiring Australia confirmed on Monday, getting off gas and switching to electric appliances is now an economic no-brainer.

The report finds Australia has passed the “electrification tipping point,” where replacing gas appliances and petrol cars with electric alternatives works out cheaper over a 15-year period – for every scenario and in every state and territory – even accounting for any higher up-front costs.

Beyond the cost savings, however, Moore says electrification will be vital to meeting the City’s climate targets.

“We remain in a climate crisis, which means we need to pull every lever we have in order to keep reducing our emissions,” she said in a statement on Tuesday.

“To rely on gas means a continued cost for our hip pocket, a continued cost for our health and a continued cost for our planet. It is a price that we simply cannot afford to pay.”

The paper is open for public comment until Monday May 05. Visit sydneyoursay.com.au for details.