The Gas Statement of Opportunities (GSOO) highlights the critical need to develop new natural and renewable gas sources to guarantee that Australian homes and businesses have affordable, reliable energy during the winter months, the Australian Pipelines and Gas Association (APGA) said.
APGA stated that AEMO‘s GSOO report “reaffirms the important role gas-fired generation will play in reducing emissions and bolstering electricity reliability as the power system transitions from coal to intermittent renewable generation”.
APGA added that the report demonstrates how gas generation works with renewables to unlock a faster and more cost-effective path to net zero when coal-fired plants retire.
According to APGA, the organisation is at the forefront of the domestic renewable gas industry, including hydrogen and biomethane. APGA added it is wholly dedicated to Australia’s emissions reduction objective of 43% by 2030, with a net zero aim by 2050.
APGA Chief Executive Steve Davies stated that the quickest and most cost-effective approach to decarbonise homes and businesses is to use a dual pathway incorporating electrification and renewable gas.
“The GSOO indicates that strong policy will be required to have Australians electrify their homes. In other words, it means they need to be paid not to use their gas appliances,” Davis said.
Davies added that it demonstrates how the path to electrifying homes is back-to-front.
“Instead of throwing enormous sums of taxpayer money to subsidise full electrification, the GSOO reveals there is a big opportunity to further develop a renewable gas pathway that helps Australians to decarbonise quickly and affordably without being forced to switch to appliances they don’t want,” Davies explained.
According to recent modelling by the Parliamentary Budget Office, government subsidies would cost an average of $13,000 per household to cover half the cost of installing solar panels, electric hot water, and heating. This estimate excludes the costs of solar batteries, at-home electrical upgrades, induction cooktops or installation, and adapting the entire power infrastructure to manage a 40-60% increase in load demand.
The GSOO determined that the Green Energy Exports pathway was the most effective strategy to encourage green energy exports.
In this situation, AEMO proposes combining biomethane and hydrogen in gas distribution networks that are already technically prepared to handle these renewable gases. This scenario has the smallest natural gas shortage, meaning more supply will be available to companies that require it the most.
Last year, federal and state energy ministers agreed to change the National Gas Law and the National Energy Retail Law to incorporate hydrogen and other renewable gases.
The HyP SA facility has started delivering a 5% renewable gas blend to over 3700 South Australian gas customers, including individuals, companies, and schools, with ambitions to switch the entire SA gas network to zero emissions green hydrogen by 2050.
Meanwhile, in NSW, Jemena’s Malabar facility will convert biowaste from Sydney’s wastewater pipes into renewable gas, heating showers and houses and lighting up BBQs for 6,000 households beginning in early 2023, with the potential to expand to more than 15,000 connections.
In Western Australia, ATCO has begun blending renewable hydrogen into the WA gas distribution network to assist the WA Government in meeting the longer-term aim of blending up to 10% of the network by 2030 to significantly reduce emissions.
