The Australian Energy Infrastructure Commissioner (AEIC) and Net Zero Economy Authority (NZEA) have worked together to create a clear summary of Australia's energy shift. This explainer aims to answer our most frequently asked questions.
Why is the energy shift happening?
Australia’s energy system has gone from relying on a small number of coal-fired power stations in a few local areas to harnessing a larger number of spread-out renewable energy sources.
These long-term changes have multiple causes and moving parts. As electricity demand grows and coal-fired generators get older and more expensive to maintain, all Australians need a robust energy system that keeps up with our basic needs. 2 coal-fired power stations have closed in past 5 years and 5 are expected to close in the next 5 years. These are technological and economic issues that governments would have to tackle even if they were not also responding to the challenges of global climate change.
On the best available evidence and independent analysis, renewable energy alongside new supporting electricity infrastructure is cheaper and more reliable than other alternatives. This is why renewable sources have already grown from providing around 27% to the national electricity market in 2020 to 43% in 2025.
What does it mean in practical terms?
With the need to replace ageing power plants, Australia’s energy shift is already happening.
How it happens, and what is achieved at a project, regional and national level in coming years, depends on all of us. The closure of old stations and the building of new infrastructure bring real change to communities. Governments at all levels are working with communities and industry to better plan for the challenges and opportunities that come with these changes and new investments.
For example, at the federal level, the Australian Government is pursuing its policy objectives for a fair, orderly and efficient transition through the Net Zero Plan.
How is it being managed – and by who?
Nation-wide, the Energy and Climate Change Ministerial Council (ECMC) is the peak forum for the federal, state and territory governments to collaborate on these issues.
New renewable energy projects and the infrastructure that supports them – such as transmission lines, substations and energy storage – must go through established planning and approval processes. These processes operate at both state and national levels depending on the type, scale and location of a project. They are designed to assess environmental, technical and social impacts as well as to identify community benefits. They include formal opportunities for community consultation so local residents, landholders and other stakeholders can provide input and raise questions before decisions are made.
The AEIC helps local communities get meaningful answers to their questions or concerns about energy infrastructure. This includes new and existing wind and solar farms, grid-scale energy storage (like pumped hydro or large batteries) and new major powerline projects. They promote credible sources of trusted information, share insights on best practice approaches, and engage across governments and stakeholders on outcomes from the Community Engagement Review (2023).
More information
Where in Australia projects are being developed
Energy infrastructure – AEIC website
What resources exist to drive best practice
Best practice and Resources – AEIC website
How the NZEA works in the regions
Regions – NZEA Website
Why support for workers is essential
Energy Industry Jobs Plan – NZEA website
Download this explainer
Australia’s energy shift – explainer – AEIC website
Acknowledgement of Country
We acknowledge the Traditional Custodians of Australia and their continuing connection to land and sea, waters, environment and community.
We pay our respects to the Traditional Custodians of the lands we live and work on, their culture, and their Elders past and present.