Victoria’s Power Shift: The hidden cost of forced electrification in Victoria
Research commissioned by Energy Networks Australia reveals the hidden costs of the Victorian Government’s push for mandatory electrification.
Research findings point to significant increases in household energy bills and added pressure on the state’s electricity generation system if enacted too early.
The pressure comes from increasing the overall demand for electricity in the early mornings, evenings and winter peaks – times when people are normally using gas heaters to warm their home and solar and wind are at their lowest output.
Modelling undertaken by L.E.K. Consulting shows that the wholesale cost of electricity will go up for all Victorians if we are forced to switch from gas too soon, and that the impact on Victoria’s emissions is negligible.
Read Energy Networks Australia report: Victoria’s Power Shift – The hidden cost of forced electrification in Victoria
L.E.K. Consulting was engaged by Energy Networks Australia to assess the impact of the Victorian Government’s Building Electrification RIS on Victorian customers.
L.E.K. partnered with Endgame Analytics to prepare a ‘whole of energy system’ analysis of the impacts of the RIS – considering the wholesale electricity and gas market impacts, the network costs, customer costs of electrification and the notional reductions/increases in emissions.
L.E.K.’s work adopted a similar approach and assumptions to the recent ENA report, The Time is Now report.
Read L.E.K. Consulting report: Impacts of Forced Electrification on the Victorian Energy System, Costs and Emissions