Call for Aust Government to ramp up electrification

In light of the unfolding global energy crisis, Australia’s Energy Efficiency Council (EEC) is urging the government to strengthen the nation’s resilience by ramping up electrification of homes.

The International Energy Agency (IEA) has cautioned that it may take months to recover from current disruptions to oil and gas supplies in the Middle East.

“This highlights the economic and financial vulnerabilities we face if we continue to rely on fossil fuels,” said Luke Menzel, CEO of the Energy Efficiency Council.

“While the immediate impact of this crisis has been on petrol prices, a prolonged conflict could result in higher gas prices as well. Accelerating the switch from oil and gas to clean, efficient electricity reduces running costs and insulates Australian households and businesses from future economic shocks.”

Citing recent research by the Institute for Energy Economics and Financial Analysis (IEEFA), the EEC said that upgrading homes with electric appliances, energy efficiency measures, solar and batteries could cut home energy bills by up to 90%.

“Electrification is a better way to meet our energy needs in every way. It’s more efficient, cleaner, and almost always reduces running costs. Wherever we can — across buildings, transport and industries — we should electrify. And the earlier we do so, the faster we can enjoy the benefits,” Menzel said.

Over 50% of final energy demand in Australia’s residential sector is sourced from electricity, growing at a rate of 1.7% annually over the past five years of data, after flatlining in the years prior.

Menzel said that while this sector growth rate was better than the economy-wide growth in electrification — showing that households were increasingly embracing electricity over gas — it remained too slow.

“Around 5 million homes remain connected to reticulated gas networks, with another 2 million using LPG. They all need to make the shift from gas to efficient electric homes by 2050,” Menzel said.

“We need a large-scale, long-term, national effort to upgrade our existing housing stock over the next 25 years into energy-efficient, electrified homes through a range of improvement measures such as insulation and draught-proofing, and upgrades to efficient electric appliances.”

The EEC is advocating for government to take a range of actions, including establishing a coordinated National Retrofit Partnership to support the retrofitting of millions of homes; revamping incentive programs for efficient electrification; and expediting mandatory energy performance ratings and disclosure for homes.

It also recommends the phasing out of gas appliances (to be replaced with efficient, electric alternatives at end of life) and modernisation of appliance standards via regulation, as well as widespread adoption of energy-efficient rental standards such as those in place in Victoria and the ACT.

Image credit: iStock.com/Bilanol