Draft Planning Control Options for All-Electric Buildings

Council proposed all-electric building controls as part of the draft Harmonisation DCP 2023 based on:

• Existing provisions first introduced in the Parramatta City Centre DCP (Section 9.8.3) in 2022 - these controls require all new buildings in the City Centre to use only electricity for all energy requirements associated with normal operations.  
   
• The strategic intent of the State Government’s Sustainable Buildings State Environmental Planning Policy (SEPP) 2022 - the SEPP requires that new commercial buildings and some State Significant Developments demonstrate that their operations are, or can be, fossil fuel-free by 2035.
   

Council did not support the draft controls contained within Section 5.4.3 All Electric Buildings (see Section 5, Page 71 within the draft DCP via this link). Instead, Council resolved to investigate the policy area and requested an additional report to reconsider its position, with future community consultation planned. That report was provided to Council on 11 August 2025, where it was resolved to consult the community and key stakeholders on the above three options. 

Council’s proposed all-electric building controls expand on existing provisions first introduced in the Parramatta City Centre DCP (Section 9.8.3) in 2022. These controls were retained during the DCP Harmonisation process and are now being considered for expansion to the wider Local Government Area through the Parramatta DCP 2023. 

While Council did not adopt the draft controls for areas outside the City Centre, it resolved to further investigate the potential for expanding all-electric requirements. Council reviewed and assessed the appropriateness and benefits of introducing all-electric building controls. The review considered:

• Alignment with State planning policies, including the Sustainable Building SEPP
• Local context and the need for all-electric buildings in Parramatta
• The potential impact on community-wide emissions
• Health, cost, and technology availability

The findings supported the inclusion of all-electric provisions as these controls:

• Set a clear direction for future development, rather than a strict mandate
• Align with Federal, State, and Council strategies for reducing emissions
• Offer long-term cost savings and health benefits for the community
• They are especially beneficial for strata developments, which are more difficult and costly to retrofit after construction.

Council is taking a proactive approach by proposing these controls for land outside the City Centre to support a cleaner, healthier, and more sustainable future for Parramatta. For the full Council report on this matter, click here. 

Yes, an exemption is available to future all-electric building controls where you can demonstrate that the intended use of the building requires a process or equipment that cannot be served by electricity, and fossil fuels may be provided for that service only.

Evidence shall be provided with the application of market testing and equipment supplier advice to confirm that an electricity-powered alternative is not technically possible.

The below outlines the proposed options for all-electric building controls, including their description and affected developments.  

Option 1 

Description

All new developments outside the City Centre will continue to have the option to include gas supply. Sustainable Building SEPP requirements will apply to all commercial buildings and non-residential State Significant Developments.

Affected development

New large commercial and non-residential State Significant Developments will have to comply with the requirements of the Sustainable Building SEPP and demonstrate that they are, or can be, fossil fuel-free by 2035.

Option 2

Description

All new commercial and non-residential State Significant developments, with the addition of all new residential developments that are strata subdivided (i.e. multi-dwelling housing, residential flat buildings, shop top housing).

Affected development

All new commercial buildings and non-residential State Significant Developments, and new residential developments that are strata subdivided, i.e. more than one dwelling on one block of land – this includes:

• Multi-dwelling housing (i.e. strata titled townhouses and terraces)
• Residential Flat Buildings (i.e. apartments)
• Shop Top Housing (i.e. apartment on top of non-residential).

Option 3

Description

All new commercial and non-residential State Significant developments, with the addition of residential flat buildings only. 

Affected development

All new commercial buildings, and non-residential State Significant Development, and residential flat buildings only (i.e.apartment).

While green gas (such as biogas or hydrogen blends) is a promising technology, current planning controls prioritise all-electric buildings to reduce emissions, improve indoor air quality, and support long-term sustainability goals.

At this stage, hydrogen is unlikely to be a competitive, scalable option for most residential applications due to cost, infrastructure requirements, and appliance compatibility. Significant upgrades to the existing gas network would be necessary, along with replacing appliances to be hydrogen compatible, which would be expensive. Biomethane, while more compatible with existing systems, still faces economic and logistical challenges.

These alternatives are not expected to replace wide-scale electrification in residential settings. However, they may play a role in supporting industrial and manufacturing sectors where electrification is not feasible. This approach aligns with the direction of the NSW Government’s future gas strategy, which explores the role of green gas in hard-to-electrify industries rather than residential use.

For more information in relation to this, please refer to the Federal Government’s Future Gas Strategy. 

Residential flat building (RFBs) are buildings with 3 or more dwellings, but do not include attached dwellings, co-living housing or multi-dwelling housing.

For more information on residential flat buildings (RFBs), visit the NSW Planning Portal.

Multi-dwelling housing (e.g. strata titled townhouses and terraces) referes to housing where there is 3 or more dwellings (whether attached or detached) on one lot of land, each with access at the ground level, but does not include a residential flat building.

For more information on strata subdivision, visit the NSW Planning Portal.

The Sustainable Buildings SEPP is a NSW Government planning policy that came into effect on 1 October 2023. It introduces new sustainability standards for all new residential and non-residential developments to help reduce environmental impact and support the state’s net zero emissions target by 2050.

Key features include:

• All-electric requirement: Large commercial buildings (e.g. offices, hotels, serviced apartments) must be designed to operate without fossil fuels or be capable of converting to all-electric by 2035
• Improved energy and water efficiency standards for homes and commercial buildings
• Higher thermal performance for residential buildings (e.g. 7-star NatHERS rating)
• Embodied emissions reporting for building materials
• Net zero readiness for certain state significant developments (e.g. hospitals, schools, cultural buildings)

These changes aim to make buildings more comfortable, reduce utility bills, and support climate resilience across NSW.

For more information, visit the NSW Planning Portal. 

Development of a large scale, economic value, or that carries potential social or environmental impacts can be deemed to have State Significance. 

Examples of SSD include:  

• New education facilities, hospitals and correctional centres
• Chemical industries
• Manufacturing facilities
• Mining and extraction operations
• Tourist and recreation facilities
• Some port facilities
• Waste management facilities
• Energy generating facilities. 

Development on identified sites, including the Sydney Opera House and Olympic Park, can also be considered State Significant.  

For more information, visit the NSW Planning Portal. 

Low-rise housing is generally 1 to 2 storey, dual occupancy, multi-dwelling housing (such as terraces and townhouses) and manor houses. This form of housing contains 2 or more dwellings.

In the spectrum of residential housing, low-rise housing sits between a single dwelling house and a typical apartment building (which are 3 or more storeys in height).

Mid-rise housing is generally 3–6 storey apartment buildings.

For more information, visit the NSW Planning Portal. 

A Development Control Plan (DCP) provides detailed planning and design guidelines to deliver the development outcomes that are permitted under a Local Environmental Plan (LEP). A DCP provides the detailed built form and building controls on how the density or height of a land use permitted under an LEP can be delivered or distributed on a development site. Specifically, this includes guidelines to address the following:

• Building setbacks from adjoining land
• Building form and structure to manage transition to surrounding land uses, manage bulk and scale, amenity, and prevent out of character development
• Landscaping, private and communal open space and tree planting
• Solar access and overshadowing
• Acoustic and visual privacy
• Residential subdivision

In addition to building controls, a DCP also provides guidelines on other planning considerations including, but not limited to, the following:

• Environmental management such as flooding, stormwater management, pollution, environmental performance, and protection of the natural environment, 
• Parking rates, carshare, travel plans, electric vehicle infrastructure, vehicular access, bicycle parking, loading and servicing.
• Heritage listed buildings and Heritage Conservation Areas

The primary function of a DCP is to manage development and help deliver sustainable, liveable, and productive places.

Under Section 4.15 of the Environmental Planning and Assessment Act 1979, a consent authority (such as Council) is required to take into consideration the relevant provisions of the DCP in determining a development application.