GAS APPLIANCES IN A CLIMATE OF CHANGE. Leon Bogers, GAMAA Executive Councillor

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1 GAS APPLIANCES IN A CLIMATE OF CHANGE Leon Bogers, GAMAA Executive Councillor

2 About GAMAA (Gas Appliance Manufacturers Association of Australia) Formed in 1957 to represent Natural Gas and LPG appliance and component manufacturers Representation on more than 100 committees and working groups Works closely with governments and regulatory authorities in matters relating to policy and regulation

3 GAMAA s position on energy and climate change: 1. Gas plays an effective role in the transition to a carbon constrained economy 2. GAMAA supports a technology neutral approach in the transition to a carbon constrained economy which, by definition, includes gas 3. GAMAA supports a nationally coordinated energy policy 4. It is GAMAA s view that consumers (Domestic, Commercial and Industrial) must retain their right to choose gas technologies

4 Paris Agreement (December 2015) A global goal to hold average temperature increase to well below 2 C and pursue efforts to keep warming below 1.5 C above pre-industrial levels, by reducing carbon emissions Australia s target is to reduce carbon emissions by per cent below 2005 levels by 2030 Finkel Review: The electricity sector is the largest single source of carbon emissions in Australia. Finkel proposes a target of 42% renewable electricity by 2030

5 Arguments in the Electricity versus Gas debate: Renewable versus Non Renewable.. Clean versus Polluting Efficient versus Inefficient Cheap versus Expensive Environment, efficiency and costs (capital and operating) are important considerations But what about carbon abatement?

6 PHOTO VOLTAIC ARRAY SOLAR ELECTRIC WATER HEATER EVAPORATIVE COOLER GAS WATER HEATER REVERSE CYCLE AC GAS SPACE HEATER

7 Year % Renewable Electricity (National) Gas & Evap House Gas heater, Gas hot water, Evaporative cooler No PV Electric House Reverse Cycle AC, solar/electric hot water Abatement factor: Electric House Gas & Evap House Emissions (kg CO2e) Gas & Evap House + Solar PV (4 kw) With PV Electric House + Solar PV (4 kw) Abatement Factor: (Gas & Evap House + PV) (Electric House + PV) ? (?)

8 What do these numbers mean? 1. Right now, if a gas and evap house was to be converted to an electric house, it s CO2 emissions would increase by 40%. 2. Right now, a gas and evap house with 4 kw PV achieves 17 times more carbon abatement than an electric house with 4 kw PV. 3. It is only once 73.5% of electricity nationally is generated from renewable sources that emission performance of the electric house is on par with the gas & evap house. 4. Continued use of gas enables faster transition to green electricity generation, one of the key recommendations in the Finkel Review.

9 What about the ACT? 40% of annual household energy use in the ACT is from Natural Gas. 70% of the annual gas is used during the cool/cold months (May to September). This peak is from house heating demand. Gas Heating versus Electric Heat Pump heating: Claim: Electric (heat pump) appliances are 500% efficient Fact: Not when it is below 0 O C outside! Manufacturers and the Clean Energy Regulator (CER) recognize the performance of heat pumps reduces with lower ambient air temps. The result is revised energy labeling requirements in the Greenhouse and Energy Minimum Standards (GEMS) legislation, starting in 2019.

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11 What about the ACT? 40% of household energy use in the ACT is from Natural Gas Electricity consumption is projected to increase by 30% by Rumours are that the ACT Government wants to phase out Natural Gas by In the ACT this means that electricity consumption will double by 2050, and will have to be 100% renewable. Can this be achieved? How will the balance of the energy trilemma (environment, security, cost?) and amenity (comfort) be optimized?

12 In conclusion: In a climate of change and uncertainty, the gas grid and the appliances connected to it can optimise the energy trilemma (environment, security, cost) and provide high levels of amenity as we transition to a carbon constrained economy and beyond.