IEEFA has found that improving energy affordability in Australia does not have to be incompatible with emissions reduction targets. The country's aging coal fleet and network assets need to be replaced, with renewables backed by storage and transmission being the most cost-effective option. Gas-based generation has become increasingly uncompetitive, with high prices and declining consumption. Contrary to misconceptions, renewables have not been driving electricity prices up, with high gas and coal prices, coal outages, and network costs being the main factors. Faster approval processes and better market regulations are needed to ensure a smooth transition to cleaner energy sources. Reforms to improve competition, allow distributed energy resources to compete, and promote energy efficiency, electrification, and flexible demand are key to lowering household energy bills. Transitioning to modern electric alternatives, such as heaters and hot water systems, along with solar and battery systems, can significantly reduce costs. Industrial energy efficiency and electrification also offer major savings. The key pathways to improve energy affordability are aligned with net zero emissions goals, emphasizing the need for accelerated deployment of renewables, energy efficiency, and electrification. The narrative that lowering bills and cutting emissions are mutually exclusive is false.
Australia doesn’t have to choose between energy affordability and emission reductions
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