Gas Substitution Roadmap A Measured Step Towards A Less Gas Dependant Victoria
Emily Wood | July 4, 2022
Australia’s leading advocate for large commercial and industrial energy users, the Energy Users’ Association of Australia (EUAA), welcomes recognition by the Victorian Government of the enormous challenges involved in moving away from gas in the updated Gas Substitution Roadmap.
“Gas is a fundamental input into the everyday life of most Victorians and a key driver of our food processing and manufacturing sectors,” said EUAA Chief Executive Officer, Andrew Richards. “While gas will continue to play a key role in our economy including for firming renewable energy in the years to come, we welcome this updated Gas Substitution Roadmap as a measured step towards a less gas dependant Victoria.”
The important role of gas in the Victorian economy has been highlighted in recent weeks with the impact of international pressures and cold weather across much of the east coast pushing gas prices to record levels requiring a market cap to be introduced. Yet the high prices have left many gas reliant businesses with no choice but to pass these costs through to consumers.
“Given gas is so ingrained in the Victorian economy, careful, measured steps will be required if we are to transition away from it,” said Mr Richards. “We are pleased that the Victorian Government has listened to the concerns of those that rely so heavily on gas, who were concerned with earlier versions of the Roadmap.”
Many EUAA member companies rely heavily on gas to manufacture many products that Victorians use every day. For many companies there is no commercially viable alternative to using gas although promising alternatives may be available in the future, such as green hydrogen, biogas or electrification.
“We need to ensure we preserve gas for high value activities such as manufacturing and peaking energy generation while we allow those who can, to transition to electrification or alternative fuel sources,” said Mr Richards. “There are many questions yet to be answered, and we look forward to discussing a balanced transition plan with the Victorian government.”
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The EUAA is the peak body representing Australian industrial and commercial energy users. Our membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries. Combined our members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity and gas costs.
Media Contact: Emily Wood 0421 042 121