Energy policy of Australia

Energy policy in Australia is managed by the 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.