The Victorian Government has announced a series of policies aimed at phasing out the use of natural (fossil-fuel) gas in Victoria. Policy is coordinated via the Gas Substitution Roadmap. Initiatives to date have included banning new gas connections for residential properties, and requiring gas appliances to be replaced by electric ones at end of life.
But, there is a need for policy that establishes the decarbonisation pathway for those gas users that cannot use electricity, namely, some industrial users, and gas power generators.
The Victorian Government has determined that renewable gas is a prospective solution for these users, and is proposing to establish a Renewable Gas Target to encourage supply. Among the possible options canvassed in consultation last year, a renewable gas target would be the most appropriate to underwrite more supply.
This submission responds to the Directions Paper on the Renewable Gas Target, released by the Victorian Government in December 2024. It draws on our previous reports and other published material.
In section 2, we make the case for a transition away from widespread gas use, noting some of the challenges involved.
In section 3, we note some lessons from the Renewable Energy Target that may apply to a future renewable gas target.
In section 4, we explore some of the broader risks to the success of the Victorian Government’s proposed renewable gas target, and some particular issues with the proposed design, with recommendations to correct them.