Demand for electric appliances in the face of surging gas prices is key to an ambitious plan announced on Thursday to turn off natural gas by 2045.

Soaring gas costs have added to government confidence consumer choice will drive the electrification agenda without a need to ban new appliances.

New laws will ban connections to new suburbs, with a push to ban gas connections from all new developments.

Whether houses that knock down and rebuild will be prevented from reconnecting will be determined during a public consultation process to get underway later this year.

Demand for gas in the territory is already falling by 2 per cent a year, and officials expect it to start falling by 2.5 per cent from here on out.

Gas currently comprises 20 per cent of greenhouse gas emissions in the ACT, which will need to be cut if the capital is to reach the government's 2045 net zero emissions target.

Greens Leader Shane Rattenbury said the government's roadmap would give businesses and residents certainty, and encourage the already growing take up of electric appliances.

"As you go to replace your hot water system, as you go to replace your heating system, don't put another gas one in. Choose an electric one today," Mr Rattenbury said on Thursday.

"It's better for the environment and it will be better for your bank account. And we want to help you with that transition over the coming years."

The transition will lean away from the use of hydrogen or biogas to meet decarbonisation target, with modelling finding electrification was the best path.

Modelling indicated the retail price of gas will rise by around 19 per cent from 2022-29, adding approximately $220 to the annual gas bill for the average Canberra household.

Electricity prices are anticipated to fall slightly from 2022-29, according to the ACT government analysis, which did not take into account recent gas price rises driven primarily by increased demand from overseas.

The peak demand on the ACT electricity grid will increase by as much as 50 per cent as more Canberrans switch their heating and cooking appliances, with incentives for solar and Canberra's battery absorbing some of the demand.

"Managing peak demand, population growth and maintaining the reliability of the system will require network upgrades," the government said in a statement on Thursday.

"Over the period to 2045, this would result in approximately $700 million of new network investment, which is more than double the investment made over the past 15 years.

"Much of this investment is due to the needs created by increased population and urban infill."

Emissions Reduction Minister Shane Rattenbury said electrification was underway for its environmental benefit and to deliver savings for the community.

"The research that's been done, the modelling the government's commissioned over the last 12 months - it has been made very clear to us that the most cost-effective, the most technically feasible pathway, is to electrify the city," he said.

READ ALSO:

Some commercial businesses may still need to access gas and Mr Rattenbury said there were no plans to ban homeowners using bottled gas if they wished to continue using gas appliances.

"I would say to people these new induction cook tops perform like gas. The chefs you talk to who've tried it, love it," he said.

Chief Minister Andrew Barr said the days of cheap gas in Australia appear over and renewable electricity was now the cheapest and cleanest way to power our homes and businesses.

"We're focused on the need for a gradual, gentle transition away from natural gas," Mr Barr said.

The Conservation Council ACT Region have welcomed the "ambitious policy for a cold-climate city".

Helen Oakey, Executive Director, said it would be important for the ACT government to continue supporting low-income households through the transition.

Ms Oakey said the policy provided clear guidance to households and businesses that change was coming.

"The sooner we adjust, the easier the transition will be," Ms Oakey said.

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.