Grattan Institute – Australia’s energy transition: a blueprint for success
Source: Grattan Institute
11 September 2019
Australia’s energy transition: a blueprint for success by Tony Wood, Grattan Institute Energy Program Director, outlines the key foundations needed for effective energy policy reform in Australia.
The future of Australia’s energy system will undoubtedly be very different, as we strive for reduced carbon emissions both here and around the world. Energy technology has been changing for decades, and there are now real options and opportunities for decarbonisation. We need to be flexible and adaptable for this change, as well as encouraging the use of cleaner technologies. Stable and adaptive policy, technology development, and competition should determine the technology mix.
The key points needed for Australia’s energy policy reform:
- Energy policy needs to be integrated with carbon policy.
The combined policy must aim to decarbonise all energy-using sectors including transport, industrial, and export energy. Policy around these sectors must have clear targets and mechanisms that can adapt to changes in global policy and technology.
- A comprehensive energy plan
The Council of Australian Governments (COAG) should implement a new Australian Energy Agreement, that meets national decarbonisation and reliability goals at the lowest cost. The Agreement should identify the responsibilities of the federal and state governments,
- The institutional agencies need to be strengthened
The agencies supervising the electricity and gas systems were not designed to facilitate a rapid, disruptive transformation. They should be reformed so they can focus on this task and better cooperate with each other.