New research shows that replacing gas with efficient electric technology offers a major opportunity to decarbonise Australia’s commercial buildings.
The Commercial Buildings Electrification Roadmap stage one research report reviews existing evidence on gas use in commercial buildings and the drivers and barriers to electrification.
It found replacing gas in commercial buildings with efficient, electric alternatives could reduce six megatonnes of carbon emissions which are produced annually as a result of gas consumption in that sector.
The report was undertaken by the Energy Efficiency Council in partnership with the Property Council of Australia.
Under the Australian Energy Market Operator (AEMO) Step Change scenario, Australia’s gas consumption within commercial buildings will decline from 45.8 PJ in 2024 to 9.3 PJ in 2050.
A higher level of ambition, to reduce commercial buildings’ gas consumption to zero by 2050, would require 3.5 per cent of the current commercial building stock to disconnect from the gas network each year, up from about one per cent currently.
EEC head of policy, Jeremy Sung, said a key challenge for governments and industry is to deploy electrification solutions into existing building stock.
“To reduce gas use in the commercial building sector to zero by 2050 we would need to triple the current rate of electrification,” Sung said.
“Electric appliances support our transition to a renewables-dominated grid; gas appliances don’t. Electric equipment like heat pumps are highly efficient and can reduce energy use and bring down costs.”
Sung said market demand is starting to drive a shift towards efficient, all-electric commercial buildings.
“We can accelerate that growth with a clear policy focus to address the barriers to electrification that still exist for many buildings, particularly outside of the premium end of the market,” he said.
“Existing efficient technologies are ready to roll out now, and if we get this right it stands to be a massive opportunity for building owners, commercial tenants, and the energy management sector.”
The report recommends an end to gas connections in new commercial buildings and apartment buildings.
It also recommends a range of measures to speed up the electrification of existing commercial buildings, including targets, demonstration projects, expanded energy ratings disclosure, and industry development.
Experts from over 30 companies and industry organisations provided input to the research.
The report is the first stage of the Commercial Buildings Electrification Roadmap project. Further stages of the project will work to build industry capacity and develop a comprehensive policy roadmap.