Assessing the Role of Gas Network Decommissioning in Victoria’s Equitable Energy Transition

BSL recognised that the need to electrify houses to meet Australia’s emissions targets results in large changes to the number of consumers requiring the gas network. This transition from the usage of gas pipelines could improve outcomes for households facing energy stress; however, if done poorly, it could exacerbate inequities in the energy system and beyond. 

BSL engaged Energeia to develop a framework for gas distribution network operators to assess whether decommissioning small residential areas of gas networks (sometimes referred to as gas network “pruning”) can contribute to a well-managed and equitable transition from gas. Energeia developed BSL’s proposed CBA framework in terms of scope, element definitions and calculation methods in consultation with the BSL team.

In addition, Energeia engaged the gas and electricity network operators, AusNet and Powercor, respectively, to gather data for the CBA supplemented with desktop research. Energeia used this real-world data to configure the CBA model for pruning a target area, as identified by BSL, which was identified to have an ageing gas network.

The overall CBA captured the different costs and benefits of pruning the gas network, including changes in gas and electricity network costs, and impacts on direct customers from appliance purchases and changing energy payments from electrification. Energeia’s CBA framework and report were developed to support other organisations to conduct similar analysis using this framework of costs and benefits considered.

Energeia’s full report of insights is available here.

For more information regarding Energeia’s transportation modelling or forecasting services, please contact us at energeia@energeia.com.au.