Despite a statewide gas ban ruled out by the NSW Premier, City of Sydney councillors passed a motion this week requiring all new-build homes and businesses to be gas-free.  Eight of the city’s 10 councillors voted for the change, which was promoted as a cost-saver for households and a way to reduce carbon emissions. Instead of gas cookers, the clauses into the council’s planning rules require new homes and businesses, including apartments, to use electric appliances such as stoves, cooktops, heaters and hot water units. Analysis by Strategy Policy Research suggested that it could save City of Sydney households $430 a year on energy bills and cut carbon emissions by 1.7 million tonnes in the municipality over 40 years. The motion was passed as the push across Australia to move away from gas gains momentum, with grassroots climate organisation 350 Australia’s ‘Electrify Your Council’ campaign leading the charge with its lobbying to the City of Sydney. “Only developers and gas corporations benefit from keeping our homes and businesses connected to gas,” 350 Australia chief executive Lucy Manne says. “We congratulate the City of Sydney for taking bold climate leadership and taking action where the state government is falling behind.” However, not everyone agrees that this is the right move. ▲ Master Plumbers Association of NSW chief executive Nathaniel Smith: The move from gas is not so cut and dried. Renewables are key Master Plumbers Association of NSW chief executive Nathaniel Smith told The Urban Developer that unless fully electrified buildings were connected to renewable energy sources, it still created a problem. “This is ideology over common sense,” he says. “You have a lot of ill-informed councillors who don’t realise that electrifying everything is not the answer. They will be burning more coal and gas to supply electricity to those appliances.”  “You can imagine those large buildings in Sydney CBD, those unit blocks with 1000 people; you will need levels and levels of plant rooms to get hot water to everyone.”  “There’s no room to put them, or solar, on the roof so you will need electric hot water heaters [and] you will have less apartment space—they haven’t thought about it at all.” He is also concerned about what it meant for project feasibility.  “Developers are running on tight margins,” Smith says. “You take out two or three floors to be plant rooms, then that will cut down on those profits.”  Smith suggests that councils consider renewable gas as an option.  “There are pilot models that use blends of hydrogen and natural gas—which is much cleaner—or biomethane, they could be options to putting pressure on a grid that is already stretched.”  ▲ Sydney mayor Clover Moore who spearheaded the recent gas ban, on the roof of the council buildings in July 2020 when the council became fully electrified with renewable sources. Gas bans across the country The Sydney decision follows a number of other NSW councils that have passed, or are considering, similar regulations, including Waverley and Parramatta. While NSW Premier Chris Minns has thus far ruled out a state ban, Victoria last month announced that it would be phasing out gas from next year.  Minns indicated in an interview that creating another policy change would be a complication when changes to the power grid were scheduled for next year without adequate renewable energy sources coming into the system. “The challenges in energy are serious in NSW,” Minns said, adding that there would be significant savings in fully electric homes. A NSW Department of Planning and Environment spokesperson told The Urban Developer that the state government was not changing its position on a statewide gas ban and that it would see what happeded with the changes implemented by the City of Sydney. “The NSW government understands that the City of Sydney Council is inserting a reference in its Development Control Plan (DCP) for electricity over gas,” the spokesperson said. “The DCP is not mandatory.” “We will be watching closely should a small commercial provider be detrimentally affected by a council decision.” ▲ NSW premier Chris Minns: Savings in fully electric homes. Sections of the property industry have long been advocating for a move to fully electrified buildings with the Property Council and Green Building Council of Australia recently releasing The Every Building Counts report that includes 38 recommendations for decarbonising buildings. Property Council NSW executive director Katie Stevenson says one of those recommendations was to go gas-free.  “Among its recommendations, the report advocated for new buildings to be delivered all-electric and for fossil fuels in existing buildings and appliances to be phased out,” Stevenson says.  “Buildings account for 50 per cent of the country’s electricity use and 25 per cent of all emissions, so it’s important to have policies and programs in place to drive the sector’s transition to net zero. “We are hopeful more councils will show leadership in this area and that the NSW government will reconsider its position and consider phasing out gas in new homes.” If all councils on the gas network followed suit, it could reduce carbon emissions by 24.1 million tonnes across the state. Construction code updates The decision also follows the announcement last week by the NSW government that the rollout of BASIX updates to the construction codes for more energy-efficient homes would be delayed.  Premier Minns argued that the delay would allow home buyers and builders more time to transition. Bu the Green Building Council of Australia chief executive Davina Rooney says the people of NSW deserve better.  “Last year’s commitment from Australia’s building ministers to adopt increased energy-efficiency requirements for new homes in the National Construction Code was a huge step forward for Australia and any further delays will have unacceptable impacts,” Rooney says. “The new energy-efficiency requirements will ensure new homes will have features allowing them to be heated and cooled more efficiently, which translates to cheaper energy bills. “Delaying this any further will have immediate impacts on Australians who want homes that are healthier and cheaper to run, and it will impact on our climate goals.” Rooney says that energy-efficient homes could be priced higher making it feasible for developers . “An energy-efficient home commands a premium on the sale price of up to 10 per cent, according to research from the University of Wollongong, while research from Domain shows they have greater buyer interest and sell faster.”  ▲ A render of the fully electric Lendlease community Figtree Hill at Campbelltown in NSW. Developers have already positioned themselves for the change. Lendlease is one of them, with its new Victoria Cross tower under construction in North Sydney a fully electrified building with renewable energy sources. Its Figtree Hill residential community at Campbelltown is also gas-free. This year, the developer became a founding member of the Global Cooksafe Coalition with a commitment to phase gas out of kitchens in its new projects by 2030 and all-electric retrofits of all its assets by 2040.  Its main business, Barangaroo assets and Australian Prime Property Fund Commercial (APPFC) managed fund assets are all fully renewable-energy powered. Lendlease head of sustainability, Australia, Ann Austin says it is a key part of its strategy. “Electrification is central to the decarbonisation of the property industry and to Lendlease’s commitment to absolute zero emissions by 2040,” Austin says. “We’re seeing growing interest among food and beverage retailers for electric kitchens and the benefits they bring to safety, the bottom line and emissions reduction. “Five of our tenants in our newly opened Sydney Place precinct have elected to install all-electric kitchens.” “It’s positive to see the momentum building behind an all-electric future and we’re keen to help drive and accelerate this industry change.” You are currently experiencing  The Urban Developer  Plus (TUD+), our premium membership for property professionals.  Click here to learn more.
