Building electrification can reduce emissions by replacing fossil gas, but its effects on households depend on how the transition is managed. This paper compares Australia and California to examine how institutional arrangements affect the equity of the gas-to-electricity transition. The analysis draws on a review of 35 policy, regulatory and academic documents, supplemented by 14 stakeholder consultations undertaken between 2023 and 2025. The consultations were used to test interpretation of the documentary evidence and clarify institutional and implementation issues rather than to provide a representative qualitative dataset. Three areas are examined: planning and institutional coordination, management of declining gas infrastructure, and impacts on household energy costs and participation. Australia’s electricity planning framework provides a basis for least-cost planning, but does not yet provide an explicit framework for retiring distribution gas networks or allocating associated costs. California has substantial climate and energy policy capacity but a more fragmented regulatory system, including federal constraints on local action. The review identifies distributional differences and affordability pressures in both jurisdictions, including higher energy expenditure among Australian renters and substantial electricity tariff increases in California. The comparison suggests three areas for policy attention: considering equity in infrastructure planning, actively managing declining gas networks, and improving coordination between institutions. Building electrification is therefore not only a technology and investment issue but also a question of how infrastructure costs, network decline and household participation are governed.
- Open Access
- Article
Governing Fair Building Electrification in Australia and California
- Glen T. Currie
Author Information
Received: 06 Aug 2026 | Revised: 29 Sep 2026 | Accepted: 30 Sep 2026 | Published: 15 Oct 2026
Abstract
Graphical Abstract
Keywords
building electrification | energy justice | gas decommissioning | utility regulation | equity outcomes | comparative policy analysis
References
- 1.
Ürge-Vorsatz, D.; Lucon, O.; Zain Ahmed, A.; et al. Buildings. In Climate Change 2014: Mitigation of Climate Change: Working Group III Contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change; Cambridge University Press: Cambridge, UK, 2014; pp. 671–738. https://doi.org/10.1017/CBO9781107415416.015.
- 2.
Ürge-Vorsatz, D.; Cabeza, L.F.; Serrano, S.; et al. Heating and cooling energy trends and drivers in buildings. Renew. Sustain. Energy Rev. 2015, 41, 85–98. https://doi.org/10.1016/j.rser.2014.08.039.
- 3.
Rosenow, J.; Cowart, R.; Bayer, E.; et al. Electrification and efficiency: The pathway to net zero. Energy Res. Soc. Sci. 2020, 64, 101425. https://doi.org/10.1016/j.erss.2019.101425.
- 4.
International Energy Agency. The Future of Heat Pumps. IEA Publications. 2022. Available online: https://www.iea.org/reports/the-future-of-heat-pumps (accessed on 2 October 2026).
- 5.
Markard, J. The next phase of the energy transition and its implications for research and policy. Nat. Energy 2018, 3, 628–633. https://doi.org/10.1038/s41560-018-0171-7.
- 6.
Carley, S.; Konisky, D.M. The justice and equity implications of the clean energy transition. Nat. Energy 2020, 5, 569–577. https://doi.org/10.1038/s41560-020-0641-6.
- 7.
Jenkins, K.; McCauley, D.; Heffron, R.; et al. Energy justice: A conceptual review. Energy Res. Soc. Sci. 2016, 11, 174–182. https://doi.org/10.1016/j.erss.2015.10.004.
- 8.
Sovacool, B.K.; Burke, M.; Baker, L.; et al. New frontiers and conceptual frameworks for energy justice. Energy Policy 2017, 105, 677–691. https://doi.org/10.1016/j.enpol.2017.03.005.
- 9.
Australian Energy Market Operator. 2024 Integrated System Plan for the National Electricity Market. AEMO. 2024. Available online: https://www.aemo.com.au/energy-systems/major-publications/integrated-system-plan-isp/2024-integrated-system-plan-isp (accessed on 2 October 2026).
- 10.
Australian Energy Market Operator. 2026 Integrated System Plan for the National Electricity Market. AEMO. 2026. Available online: https://www.aemo.com.au/energy-systems/major-publications/integrated-system-plan-isp/2026-integrated-system-plan-isp (accessed on 2 October 2026).
- 11.
Markard, J.; Raven, R.; Truffer, B. Sustainability transitions: An emerging field of research and its prospects. Res. Policy 2012, 41, 955–967. https://doi.org/10.1016/j.respol.2012.02.013.
- 12.
Geels, F.W. Technological transitions as evolutionary reconfiguration processes: A multi-level perspective and a case-study. Res. Policy 2002, 31, 1257–1274. https://doi.org/10.1016/S0048-7333(02)00062-8.
- 13.
California Legislation Senate Bill 1221 2024. Available online: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB1221 (accessed on 2 October 2026).
- 14.
Currie, G.T. Comparing the Californian energy transition with Australia. Energy Consumers Australia. 2025. Available online: https://energyconsumersaustralia.com.au/sites/default/files/2025-10/website-doc-gill-owen-scholarship-2025-research-conclusions-glen-currie-updated-oct.pdf (accessed on 2 October 2026).
- 15.
Kime, S.; Jacome, V.; Pellow, D.; et al. Evaluating equity and justice in low-carbon energy transitions. Environ. Res. Lett. 2023, 18, 123003. https://doi.org/10.1088/1748-9326/ac6ae1.
- 16.
Best, R.; Burke, P.J. Effects of renting on household energy expenditure: Evidence from Australia. Energy Policy 2022, 166, 113022. https://doi.org/10.1016/j.enpol.2022.113022.
- 17.
Currie, G.T. Australia’s Energy Transition: Balancing Competing Demands and Consumer Roles, 1st ed.; Springer Nature: Singapore, 2020. https://doi.org/10.1007/978-981-15-6145-0.
- 18.
Strengers, Y. Beyond demand management: Co-managing energy and water practices with Australian households. Policy Stud. 2011, 32, 35–58. https://doi.org/10.1080/01442872.2010.526413.
- 19.
Chandrashekeran, S.; de Bruyn, J.; Sullivan, D.; et al. Electrification and lower-income households in Australia: An integrated analysis of adaptive capacity and hardship. Energy Res. Soc. Sci. 2024, 116, 103688. https://doi.org/10.1016/j.erss.2024.103688.
- 20.
Climateworks Centre. Renovations and Rewiring Can Multiply the Decarbonisation Dividend. Monash University. 2024. Available online: https://climateworkscentre.org/news/renovations-and-rewiring-can-multiply-the-decarbonisation-dividend (accessed on 2 October 2026).
- 21.
California Restaurant Association v. City of Berkeley, Opinion. 2023. Available online: https://cdn.ca9.uscourts.gov/datastore/opinions/2023/04/17/21-16278.pdf (accessed on 2 October 2026).
- 22.
California Restaurant Association v. City of Berkeley, Order and Amended Opinion. 2024. Available online: https://cdn.ca9.uscourts.gov/datastore/opinions/2024/01/02/21-16278.pdf (accessed on 2 October 2026).
- 23.
California Restaurant Association. California Restaurant Association and Berkeley Settle Gas Ban Lawsuit: Berkeley Will Not Enforce Its Ban. 2024. Available online: https://www.calrest.org/news/california-restaurant-association-and-berkeley-settle-gas-ban-lawsuit-berkeley-will-not-enforce (accessed on 2 October 2026).
- 24.
California Public Utilities Commission, Public Advocates Office. 2024 Q4 Electric Rates Report. CPUC. 2024. Available online: https://www.publicadvocates.cpuc.ca.gov/press-room/reports-and-analyses/2024-q4-electric-rates-report (accessed on 2 October 2026).
- 25.
Borenstein, S.; Fowlie, M.; Sallee, J. Designing Electricity Rates for An Equitable Energy Transition; Working Paper No. 314; Energy Institute at Haas, UC Berkeley: Berkeley, CA, USA, 2021. Available online: https://escholarship.org/uc/item/9fq4z64x (accessed on 2 October 2026).
- 26.
California Public Utilities Commission. 2025 Annual Report: Neighborhood Decarbonization Zone Pilot Projects. CPUC. 2026. Available online: https://ccag.ca.gov/wp-content/uploads/2026/03/4A1-2025-Annual-Report-Neighborhood-Decarbonization-Zone-Pilot-Projects.pdf (accessed on 2 October 2026).
- 27.
Deason, J.; Wei, M.; Leventis, G.; et al. Electrification of Buildings and Industry in the United States: Drivers, Barriers, Prospects, and Policy Approaches; Lawrence Berkeley National Laboratory: Berkeley, CA, USA, 2018. Available online: https://escholarship.org/content/qt8qz0n90q/qt8qz0n90q.pdf (accessed on 2 October 2026).
- 28.
Mahone, A.; Li, C.; Subin, Z.; et al. Residential Building Electrification in California; Energy and Environmental Economics (E3): San Francisco, CA, USA, 2019. Available online: https://www.ethree.com/wp-content/uploads/2019/07/CA_Res_Building_Electrification_Final_Presentation.pdf (accessed on 2 October 2026).
- 29.
CALPIRG. Statement: California Utility Commission Increases Bills on Millions, Devalues Energy Conservation. California Public Interest Research Group. 2024. Available online: https://pirg.org/california/media-center/statement-california-utility-commission-increases-bills-on-millions-devalues-energy-conservation/ (accessed on 2 October 2026).
- 30.
Jenkins, K.; Sovacool, B.K.; McCauley, D. Humanizing sociotechnical transitions through energy justice: An ethical framework for global transformative change. Energy Policy 2018, 117, 66–74. https://doi.org/10.1016/j.enpol.2018.02.036.
- 31.
Institute for Energy Economics and Financial Analysis. Home Upgrades Can Save Renters Billions in Energy Bills. IEEFA. 2026. Available online: https://ieefa.org/articles/home-upgrades-can-save-renters-billions-energy-bills (accessed on 2 October 2026).
- 32.
Granqvist, H.; Grover, D. Distributive fairness in paying for clean energy infrastructure. Ecol. Econ. 2016, 126, 87–97. https://doi.org/10.1016/j.ecolecon.2016.02.012.
- 33.
Emmett Institute on Climate Change and the Environment. Tenant-Friendly Building Decarbonization in Los Angeles. UCLA School of Law. 2023. Available online: https://law.ucla.edu/sites/default/files/PDFs/Publications/Emmett%20Institute/Tenant-Friendly%20Building%20Decarb%20in%20LA%20-%20Final%20Digital%206-14.pdf (accessed on 2 October 2026).
- 34.
California Public Utilities Commission. Decision 24-05-028: Decision Addressing Assembly Bill 205 Requirements for Electric Utilities. CPUC, 2024. Available online: https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M531/K686/531686019.PDF (accessed on 2 October 2026).
- 35.
Cina-Sklar, Z. Decarbonization at the Neighborhood Scale: Challenges, Learnings and Opportunities in an Emerging Model. Master’s Thesis, Massachusetts Institute of Technology, Cambridge, MA, USA, 2025. Available online: https://hdl.handle.net/1721.1/162145 (accessed on 2 October 2026).
- 36.
Borenstein, S.; Davis, L.W. The Distributional Effects of U.S. Tax Credits for Heat Pumps, Solar Panels, and Electric Vehicles; NBER Working Paper No. 32688; National Bureau of Economic Research: Cambridge, MA, USA, 2024. https://doi.org/10.3386/w32688.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Suite 4002 Level 4, 447 Collins Street, Melbourne, Victoria 3000, Australia
General Inquiries: info@sciltp.com