Following Victoria's lead in banning gas cooktops and heating systems in new households would further complicate the "extreme" challenges NSW is facing in its renewable energy transition, the premier says.
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After NSW leaders sat on the fence over the weekend, Premier Chris Minns on Monday categorically ruled out intervention to stop gas connections in new builds.
The state could not be diverted from major challenges including the closure of two coal-fired power stations in 2025 and 2029, he said.
"I'm not going to add more and more bits and pieces to our energy policy when we've got enough on our plate at the moment," Mr Minns told reporters.
Victoria last week revealed it would ban gas for all new homes and subdivisions from January in a move lauded by environmental and health groups.
But the decision was as much motivated by a scarcity of gas in the southern state as environmental reasons, Mr Minns said.
Indigo Power managing director Ben McGowan told The Border Mail the move away from gas "was the way the country is going".
"I guess it may be a shock for people not paying attention, but for those paying attention it's not a shock given those things aligning, the cost, the emissions, the emissions intensity, and all the policy and investment is heading towards electricity and not gas," Mr McGowan said.
"All of the big investment in Australia is heading to electricity infrastructure, there's huge investment in transmission, there's huge investment in generation, especially in renewable energy.
"And there's also huge investment for rooftop solar household batteries and related technology.
"So that's that's clearly the way the country's going, where we're heading, towards huge investment in electricity infrastructure rather than the gas infrastructure system."
Meanwhile, NSW had enough capital and private sector investment in renewable energy, including in regional areas, but faced difficulty connecting that to the national energy market.
"It's proving to be extremely challenging," Mr Minns said.
"(It's) not just in terms of land use management, planning and farmers in the agricultural sector who are upset about lines going through their communities .... but the cost escalation is massive as well."
The premier's call comes a day after NSW Energy Minister Penny Sharpe said her office was still contemplating a gas ban.
"We're not ruling it out all together but I've got to say it's not a priority," she told reporters on Sunday.
Victoria's decision mandates electric power only for all new residential properties and subdivisions that require a planning permit from New Year's Day.
Residents of the all-electric homes are expected to save $1000 per year on their energy bills.
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