Why Phasing Out Gas Isn’t the Full Answer to Australia’s Energy Future

• December 5, 2025
• JJS
• Blog
• No Comments

Australia’s energy landscape is changing rapidly. Headlines often highlight price increases, supply concerns, outages, and the pressure placed on the national electricity grid. Alongside this, some state and local governments are proposing reduced gas connections in new homes and encouraging all-electric building upgrades.

The intention is positive—improve sustainability and lower emissions. But for millions of Australian households that rely on gas every day, completely removing gas from the mix overlooks several important considerations, including energy reliability, cost, and the emerging role of renewable gas.

At UtilityDeals, we believe Australians should have choice—and that a balanced energy system is essential for an affordable and secure transition to a low-carbon future.

Australians Still Rely on Gas for Everyday Comfort

Across Australia, gas remains a mainstay for heating, cooking and hot water, especially during winter. For households connected to the gas network, it provides:

• Instant, reliable heating

• Consistent hot water

• Fast and controllable cooking

• Strong performance even during peak electricity demand

Gas networks have historically delivered reliable service with minimal interruption—an important factor during colder months when energy use surges.

What Happens If Homes Move to All-Electric Too Quickly?

If gas is removed as an option, most homes will rely solely on grid electricity unless they install solar and battery systems. While the electricity grid is transitioning to more renewable generation, a significant portion of power still comes from emissions-intensive sources in several states.

Increasing demand on an electricity system that is already under pressure may lead to:

• Higher peak demand

• Greater reliance on older fossil-fuel generators

• Increased risk of reliability gaps

• Slower transition if renewable capacity doesn’t grow quickly enough

Australia is building more wind, solar and storage, but these additions are not yet able to fully replace the output from retiring coal generators. Until that balance is reached, shifting all households to electricity increases pressure on a grid already working through its own transition.

Why Energy Diversity Matters

A resilient energy system needs multiple fuel sources, not just one. Gas, electricity, solar, wind and emerging storage technologies all have a role to play.

Maintaining gas networks offers several advantages:

• Reduces pressure on the electricity grid

• Supports energy availability during extreme weather or outages

• Provides flexible supply for heating and hot water

• Enables development of renewable gas within existing infrastructure

The transition to lower-emissions energy will be more secure and affordable if Australia maintains diversity rather than relying on a single system to do all the heavy lifting.

The Future Is Not Gas vs Electricity — It’s Both

Decarbonisation requires a mix of solutions. Renewable electricity is critical to Australia’s future, but it’s not the only pathway. Renewable gases such as green hydrogen and biomethane provide another avenue to reduce emissions without abandoning existing infrastructure.

How renewable gas can support Australia’s transition

• Green hydrogen can be produced using excess renewable electricity through electrolysis.

• Biomethane is created from organic waste and can be injected directly into gas networks.

• Both fuels can be transported through much of the existing gas infrastructure.

• Renewable gas helps store renewable energy for use during high-demand periods.

This provides long-term flexibility and helps Australia decarbonise multiple sectors—not just homes, but also transport and industry.

Preserving Choice for Australian Households

Most Australian households continue to value gas for its reliability, affordability and performance. Removing gas connections restricts consumer choice and forces a single-energy pathway during a time when flexibility is essential.

UtilityDeals believes Australians should have the freedom to choose the energy sources that work best for their home, lifestyle and budget—whether that’s gas, electricity, solar, or a combination.

Renewable Gas: A Pathway to Lower Emissions Without Sacrificing Comfort

As renewable gas technologies scale up, they offer a realistic way to reduce the carbon footprint of gas use:

• Renewable hydrogen can be blended with natural gas and used safely with existing appliances in various proportions.

• Biomethane is fully compatible with current gas networks and appliances.

• These fuels provide a lower-carbon alternative without requiring large-scale household appliance replacements.

Renewable gas has the potential to deliver affordable, reliable, lower-emissions energy to homes and businesses—while supporting Australia’s broader sustainability goals.

A Future Built on Choice, Reliability and Innovation

Australia’s path to net-zero won’t be achieved by eliminating one energy source entirely. Instead, it will require a combination of:

• Renewable electricity

• Renewable gas

• Grid upgrades

• Consumer choice

• Smart technology

• Balanced planning

A diverse energy system ensures reliability, supports affordability, and speeds up the transition by using every available tool.

UtilityDeals supports a future where households have options—and where innovation across gas, electricity and renewables works together to deliver cleaner, more dependable energy for all.