Energy in Australia is the production in Australia of energy and electricity, for consumption or export. Energy policy of Australia describes the politics of Australia as it relates to energy.

In 2021, Australia was a net energy exporter and one of the largest exporters in the world of liquefied natural gas (LNG), coal, and minerals.

Energy consumption is dominated by oil and other fossil fuels, however, recently, due to the increasing effects of global warming and human-induced climate change on the global environment, there has been a shift towards renewable energy such as solar power and wind power both in Australia and abroad. In 2025, renewable energy accounted for 42.7% of the total amount of electricity generated in Australia.

Overview

+Australian total primary energy supply (TPES) by fuel type (in PJ)Fin. Year Oil Coal Natural Gas RenewablesTotal2009-102,058 (34.6%)2,229 (37.5%)1,372 (23.1%)286 (4.8%)5,9452010-112,195 (36.0%)2,129 (34.9%)1,516 (24.8%)260 (4.3%)6,100 2011-12 2,411 (38.9%) 2,118 (34.2%) 1,399 (22.6%) 265 (4.3%)6,194 2012-13 2,221 (37.7%) 1,946 (33.1%) 1,386 (23.6%) 330 (5.6%)5,884 2013-14 2,237.8 (38.4%) 1,845.6 (31.7%) 1,401.9 (24.0%) 345.7 (5.9%)5,831.1 2014-15 2,237.4 (37.8%) 1,907.8 (32.2%) 1,431.0 (24.2%) 343.3 (5.8%)5,919.6 2015-16 2,243.3 (37.0%) 1,956.1 (32.2%) 1,504.9 (24.8%) 361.6 (6.0%)6,065.9 2016-17 2,315.4 (37.7%) 1,936.9 (31.5%) 1,515.0 (24.7%) 378.7 (6.2%)6,145.8 2017-18 2,387.8 (38.7%) 1,847.2 (29.9%) 1,554.6 (25.2%) 382.1 (6.2%)6,171.72018-192,402.1 (38.8%)1,801.6 (29.1%)1,592.7 (25.7%)399.6 (6.4%)6,196.02019-202,241.2 (37.3%)1,706.6 (28.4%)1,647.2 (27.4%)418.8 (7.0%)6,013.82020-212,082.2 (36.1%)1,661.4 (28.8%) 1,561.1 (27.1%) 464.6 (8.1%)5,769.22021-222,106.9 (36.5%)1,586.8 (27.5%)1,559.3 (27.1%)512.5 (8.9%)5,762.12022-232,285.5 (38.9%)1,525.0 (25.9%)1,518.1 (25.8%)553.6 (9.4%)5,882.22023-242,431.6 (40.7%)1,510.4 (25.3%)1,477.7 (24.7%)557.1 (9.3%)5,976.72024-252,352.3 (40.1%)1,469.1 (25.0%)1,452.8 (24.7%)595.1 (10.1%)5,871.7 In 2009, Australia had the highest per capita emissions in the world. At that time, Maplecroft's Energy Emissions Index (CEEI) showed that Australia releases 20.58 tons of per person per year, more than any other country. However, emissions have since been reduced. From 1990 to 2017, emissions per capita fell by one-third, with most of that drop occurring in the more recent years. Additionally, the emissions intensity of the economy fell by 58.4 percent during the same time period. These are the lowest values in 27 years.

Policy Energy policy in Australia is managed by its states and territories as well as at the federal level. The federal government sets the broad energy framework, including national targets for renewable energy, emissions reduction, and energy security. It is responsible for implementing national energy policies, overseeing the operation of the national electricity market (NEM), regulating fossil fuel industries, and managing energy subsidies and tax incentives. Additionally, the federal government plays a key role in coordinating national energy infrastructure projects, including large-scale renewable energy initiatives, and sets legislation that governs energy efficiency standards, and environmental protections.

State and territory governments in Australia are responsible for implementing energy policies at the local level, including managing energy infrastructure, overseeing electricity networks, and setting state-specific renewable energy targets. They also govern energy efficiency programs, energy pricing, and supply security within their jurisdictions.

In 2023, Australia's energy consumption increased for the first time in four years and energy use in electricity supply decreased as coal generation continues to fall. With a rebound in activity post COVID-19, transport and commercial energy use increased. As of 2023, Australia remains heavily reliant on fossil fuels, particularly coal, for electricity generation. In 2023, coal accounted for 46% of Australia's total electricity generation, down slightly from 47% in 2022. In the 2022–23 financial year, oil sources contributed to approximately 38.9% of Australia's total energy consumption. The 2022–23 financial year set a record for Australia's clean energy supply. Australia has one of the fastest renewable energy deployment rates worldwide. The country deployed 5.2 GW of solar and wind power in 2018 and has significantly increased its renewable energy capacity since. During the 2022-23 year, renewable energy generation increased 11%, accounting for 34% of Australia's electricity generation- 16% from solar, 12% from wind, and 6% from hydro—the highest share recorded to date. Solar power generation grew 21% in the 2022–23 year and is 11 times higher than a decade ago.

Electricity generation

History and governance After World War II, New South Wales and Victoria started connecting the formerly small and self-contained local and regional power grids into statewide grids run centrally by public statutory authorities. Similar developments occurred in other states. Both of the industrially large states cooperated with the Commonwealth in the development and interconnection of the Snowy Mountains Scheme.

Rapid economic growth led to large and expanding construction programs of coal-fired power stations such as black coal in New South Wales and brown coal in Victoria. By the 1980s complex policy questions had emerged involving the massive requirements for investment, land and water.

Between 1981 and 1983 a cascade of blackouts and disruptions was triggered in both states, resulting from generator design failures in New South Wales, industrial disputes in Victoria, and drought in the storages of the Snowy system (which provided essential peak power to the State systems). Wide political controversy arose from this and from proposals to the New South Wales Government from the Electricity Commission of New South Wales for urgent approval to build large new stations at Mardi and Olney on the Central Coast, and at other sites later.

The Commission of Enquiry into Electricity Generation Planning in New South Wales was established, reporting in mid-1985. This was the first independent enquiry directed from outside the industry into the Australian electricity system. It found, among other matters, that existing power stations were very inefficient, that plans for four new stations, worth then about $12 billion, should be abandoned, and that if the sector were restructured there should be sufficient capacity for normal purposes until the early years of the 21st century. This forecast was achieved. The commission also recommended enhanced operational coordination of the adjoining State systems and the interconnection in eastern Australia of regional power markets.Reports of the Commission of Enquiry into Electricity Generation Planning in NSW, 4 vols, Sydney 1985.

The New South Wales Enquiry marked the beginning of the end of the centralised power utility monopolies and established the direction of a new trajectory in Australian energy policy, towards decentralisation, interconnection of States and the use of markets for coordination. Similar enquiries were subsequently established in Victoria (by the Parliament and with help from Mayer H) and elsewhere, and during the 1990s the industry was comprehensively restructured in southeastern Australia and subsequently corporatized..

Following the report by the Industry Commission on the sectorIndustry Commission, Energy Generation and Distribution, 2 volumes, Canberra, 1991 moves towards a national market developed. The impetus towards system-wide competition was encouraged by the Hilmer recommendations. The establishment of the National Electricity Market in 1997 was the first major accomplishment of the new Federal/State cooperative arrangements under the Council of Australian Governments. The governance provisions included a National Electricity Code, the establishment in 1996 of a central market manager, the National Electricity Market Management Company (NEMMCO), and a regulator, National Electricity Code Administrator (NECA).

Following several years experience with the new system and several controversiesG Hodge et al, Power Progress: an Audit of Australia's Electricity Reform Experiment, Australian Scholarly Publishing, Melbourne, 2004. an energy market reform process was conducted by the Ministerial Council on Energy.National Energy Market Reform . Department of Resources, Energy and Tourism. As a result, beginning in 2004, a broader national arrangement, including electricity and gas and other forms of energy, was established. These arrangements are administered by a national regulator, the Australian Energy Regulator (AER), and a market rule-making body, the Australian Energy Market Commission (AEMC), and a market operator, the Australian Energy Market Operator (AEMO).

Over the 10 years from 1998–99 to 2008–09, Australia's electricity use increased at an average rate of 2.5% a year. In 2008–09, a total of of electricity (including off-grid electricity) was generated in Australia. Between 2009 and 2013 NEM energy usage had decreased by 4.3% or almost .

Coal-fired power

Australia had a fixed carbon price of A$23 ($23.78) a tonne on the top 500 polluters from July 2012 to July 2014.Senate passes carbon tax Guardian 8.11.2011

Nuclear power

Jervis Bay Nuclear Power Plant was a proposed nuclear power reactor in the Jervis Bay Territory on the south coast of New South Wales. It would have been Australia's first nuclear power plant, and was the only proposal to have received serious consideration as of 2005. Some environmental studies and site works were completed, and two rounds of tenders were called and evaluated, but the Australian government decided not to proceed with the project.

Queensland introduced legislation to ban nuclear power development on 20 February 2007.Queensland bans nuclear facilities Aleens Arthur Robinson Client Update: Energy. 1 March 2007. Retrieved 19 April 2007. Tasmania has also banned nuclear power development.Australias States React Strongly to Switkowski Report Hieros Gamos Worldwide Legal Directories 10 December 2006. Retrieved 19 April 2007. Both laws were enacted in response to a pro-nuclear position, by John Howard in 2006.

John Howard went to the November 2007 election with a pro-nuclear power platform but his government was soundly defeated by Labor, which is opposed to nuclear power for Australia.

Geothermal power

The 2008 federal budget allocated $50 million through the Renewable Energy Fund to assist with 'proof-of-concept' projects in known geothermal areas."Clean Coal and Renewable Energy". Martin Ferguson Press Release. 20 May 2008.

Carbon capture

The IPCC AR4 Working Group III Report "Mitigation of Climate Change" states that under Scenario A (stabilisation at 450ppm) Annex 1 countries (including Australia) will need to reduce greenhouse gas emissions by 25% to 40% by 2020 and 80% to 95% by 2050. Many environmental groups around the world, including those represented in Australia, are taking direct action for the dramatic reduction in the use of coal as carbon capture and storage is not expected to be ready before 2020 if ever commercially viable.

Federal Government Australia introduced a national energy rating label in 1992. The system allows consumers to compare the energy efficiency between similar appliances.

Institutions