Energy Policies of IEA Countries: Australia 2018
Australia has abundant energy resources. It is a leading exporter of coal, uranium
and liquefied natural gas (LNG), much of which is destined for Asia’s growing markets.
At home, Australia’s energy sector is undergoing a significant transformation. The
power system is seeing higher shares of variable wind and solar power; South Australia
leads the deployment.
Yet despite this wealth of resources, energy security concerns are on the rise. As
domestic oil production is dwindling, dependency on oil product imports and the oil
supply chain are growing steadily. Gas supply in the east coast market has become
tight, leading to higher prices in that market. Australia’s power system finds itself
exposed to concerns over reliability, particularly amid extreme weather events. While
its carbon intensity is in decline, it is still the highest among IEA countries. For
natural gas to play a role as a transition fuel to a low-carbon economy, resource
development, additional pipeline capacity and market integration are critical.
The government is implementing reforms to foster reliability and security of supply,
prompted by the South Australia system wide blackout of September 2016 and the Finkel
Review. However, a consistent energy and climate framework up to 2030/50 is needed
at the Commonwealth level to ensure continued and adequate investment in the energy
With the intention of helping to guide the country towards a more secure and sustainable
energy future, this 2018 in-depth review analyses these and other energy policy challenges
facing Australia, and provides recommendations for further policy improvements.
Published on August 13, 2018
In series:Energy Policies of IEA Countriesview more titles