City of Sydney plans all-electric future

The City of Sydney has announced ambitious new plans for the wholesale electrification of new residential buildings, large commercial buildings and hotels by 1 January 2027.

The transition will begin with new residential developments, which from 1 January 2026 will need to ensure their indoor appliances (cooking and heating) are electric.

The rules relating to new large commercial buildings and hotels are part of broader proposals currently on public exhibition. These proposals also include the electrification of outdoor appliances (heaters) for new residential developments.

These plans stem from an exploration by the City of Sydney into the benefits and challenges of building all-electric buildings, with the aim of creating healthier homes and easing cost-of-living pressures.

Lord Mayor of Sydney Clover Moore AO welcomed the new rules for indoor electric appliances. “Relying on fossil fuel gas is bad for the planet, bad for our finances and bad for our health. Ensuring all-electric buildings into the future is simply a logical next step to take,” she said.

“These changes will create healthier and more energy-efficient buildings which will meet future energy standards and avoid expensive retrofitting.

“They also spare households from being locked into increasingly expensive gas prices and potential shortages.”

The City of Sydney estimated that, with gas prices forecast to keep increasing due to network charges, each new household would save about $626 a year in energy bills in an electrified development. The Council also pointed out that electric systems were more efficient — with just one connection and daily rate — and healthier, with exposure to pollutants from gas cooktops having been found to have a similar health impact as passive smoking.

In drafting both proposals, the City of Sydney consulted with community, industry and peak bodies.

The wider proposal means that development applications for all new residential developments and large commercial developments will be gas-free from 1 January 2027 if they’re adopted by Council after the exhibition period. Larger commercial developments include new tourist accommodation with more than 100 rooms and large commercial buildings with more than 1000 m² of floor space.

The proposal aligns with the NSW Sustainability State Environmental Planning Policy, which encourages the design and delivery of sustainable buildings.

The new rules won’t apply to industrial uses or existing buildings. Also, where a mixed-use development is affected by the planning controls, any food and beverage premises within the development are still able to use gas, provided there is capacity for electrification in the future.

The proposed changes have been applauded by solar energy advocacy group Solar Citizens.

“The City of Sydney has now joined the ranks of a growing movement of NSW councils that have implemented mandatory building electrification policies within their Development Control Plans, including the City of Parramatta, Lane Cove Council, City of Newcastle and Waverley Council,” said the group’s CEO, Heidi Lee Douglas.

“The case is crystal clear: the households with the cheapest energy and fuel bills are the homes with solar on the roof, a battery behind the meter, an electric vehicle on the driveway, and efficient all-electric appliances.

“As we progress towards an electricity grid powered by renewables, household electrification is an essential part of the clean energy transition.”

The commercial building proposals are open for public comment until 28 July 2025.

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