Gas vs Renewables
in Victoria: A Balanced
View

In Victoria, a significant and sometimes confusing debate is unfolding about the future of energy. Advertisements promoting the benefits of gas are appearing on television, while governments, industry groups, and technology providers are promoting electrification and renewables as the path forward.

For homeowners, businesses, and policymakers alike, the conversation can feel polarised: gas versus renewables. But the reality is far more nuanced. This is not simply a battle between two opposing energy sources. It is a complex transition involving energy reliability, economic interests, climate policy, infrastructure investment, and the evolution of technology.

This editorial presents a balanced view. Rather than framing the debate as a conflict, it is more accurate to view it as a structural transition that will unfold over many years. Understanding the forces behind this shift helps explain why the conversation has become so prominent in Victoria today — and why it matters deeply for the decisions households and businesses are making right now.

Victoria stands out as the most gas-dependent state in Australia when it comes to household energy use. More than two million Victorian homes currently rely on gas for heating, hot water, or cooking — a scale of reliance that has no direct parallel elsewhere in the country.

This widespread reliance developed over decades as gas networks expanded across metropolitan and regional areas. Installing gas heating or hot water became the default when homes were built or renovated — partly because of cost, partly because of existing infrastructure, and partly because it was what builders and plumbers knew how to do. The habit became structural.

As a result, transitioning away from gas is not a minor policy adjustment. It represents a large-scale structural shift affecting infrastructure, appliances, building design, and household behaviour all at once. Appliances have long lifespans, infrastructure has been built over generations, and households must make decisions based on cost, reliability, and day-to-day convenience — not energy policy abstractions.

This is one of the reasons Victoria has become such an important case study in the global electrification movement. What works — or doesn't work — here will offer lessons for gas-reliant communities around the world.

One of the most common and legitimate arguments in favour of maintaining gas in the energy system relates to reliability. It is an argument that deserves to be taken seriously rather than dismissed, because energy reliability is not an abstract concern — it has real consequences for households, hospitals, industries, and the economy.

Renewable energy sources such as solar and wind are intermittent by nature. As renewable penetration increases, managing fluctuations in supply becomes more technically demanding. Historically, gas-fired power stations played a central role in stabilising the electricity grid during periods of high demand or low renewable output.

However, the energy system is evolving to manage this challenge in new ways. Large-scale batteries — such as the Victorian Big Battery — pumped hydro storage projects, improved transmission networks, and sophisticated demand management technologies are increasingly used to balance renewable generation. The economics of storage are improving rapidly, and the pipeline of new projects is substantial.

While gas may still play a role in providing backup power during the transition, its importance as a reliability backstop is expected to diminish meaningfully as storage technologies improve and renewable capacity continues to expand across the National Electricity Market.

When the entire picture is considered, the direction of travel is clear. Electrification powered by renewable energy is becoming the dominant pathway for future energy systems around the world — not because of ideology, but because the economics, technology, and environmental logic increasingly point in the same direction. Victoria is not merely observing this global trend from a distance; it is living it in real time.

That does not mean gas will disappear overnight, nor does it erase the significant role gas has played in building the modern Victorian energy system. Millions of homes are still connected to the gas network, billions of dollars of infrastructure still operate across the state, and many households and businesses will continue relying on gas for years to come. What it does mean is that the balance between fuels is shifting — as technology improves, as economics change, and as environmental priorities become embedded in policy and investment decisions at every level.

Victoria sits at the centre of this transition because of its unusually heavy reliance on gas and its strong policy support for renewable energy. The lessons learned here — about what works, what costs are reasonable, and what support households need — will matter far beyond Victoria's borders.

For homeowners and businesses, the most sensible approach is not ideological but practical. The transition will not happen overnight, but it is well underway — and understanding the forces driving it is the first step toward making good decisions in the years ahead.

Trent Jones is the Founder and Managing Director of All Electric Homes, a Melbourne-based electrification company delivering whole-of-building gas-to-electric transitions for residential, strata, and local government clients across Victoria. He is a qualified electrician with over 20 years of industry experience.