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By Kirstin Crothers
Australia’s ambitious energy transition aims to reduce carbon emissions while ensuring energy security and affordability. However, the pace of this transition is encountering significant challenges. Speakers at Australian Energy Week 2025 will be articulating their concerns and proposing solutions to overcome these obstacles.
Renewable integration accelerating the shift
Mark Collette of EnergyAustralia, emphasises the urgency of integrating renewable energy sources into the national grid. He has said, “Australia’s net-zero electricity system is taking shape, with the energy coming from wind and solar and the controllability coming from storage and flexibility capacity.”
This sentiment reflects a broader industry consensus on the necessity of enhancing grid infrastructure to accommodate the increasing share of renewable energy. There is a need for substantial investment in transmission and storage solutions to ensure grid stability as coal-fired power plants are decommissioned.
Significant progress made… but far to go
ElectraNet’s Simon Emms notes that the transition to renewables is already very advanced in South Australia, “We now average 75% net variable renewable energy on an annual basis, which is world-leading for a power system of our size.”
Elsewhere, Craig Stallan is bullish about Lumea’s role in connecting renewable energy generators and large-scale storage to the NEM, noting: “Over the past five years, we have connected more than 55 generators to the grid and brought 12GW of energy to market—enough to power four million households.”
But Energy Networks Australia’s Dom van den Berg is focused on the critical need for timely infrastructure development to support Australia’s renewable energy transition. She stated: “When it comes to the grid, we are at the cusp of a once-in-a-generation transformation, which is not without its challenges.”
She says there is urgency in delivering essential transmission projects to connect renewable energy sources to areas where it’s needed, noting that “timeframes to deliver transmission and utility scale generation, while meeting emissions targets, are tightening and will need significant coordination to ensure streamlined planning and investment processes.”
Anna Collyer, Chair of the Australian Energy Market Commission (AEMC), has emphasised the necessity for policy reforms to support Australia’s energy transition, saying: “To get an idea of the magnitude of investment needed to reach net zero, we need an eight-fold increase in large-scale wind, solar and hydro generation.”
Market reforms: adapting to a changing landscape
Tim Nelson, Chair of the NEM Wholesale Market Settings Review, has noted the importance of reforming market structures to support the energy transition. He notes, “Reforming the NEM and WEM… will not happen without comprehensive market reform.”
Nelson advocates market mechanisms that incentivise investment in flexible capacity, including demand-side resources and storage technologies, to accommodate the growing role of distributed energy resources. He has also stressed the need for policies that protect consumers from potential price volatility during the transition.
Balancing affordability
Endeavour Energy’s Guy Chalkley has addressed the dual challenge of advancing the energy transition while addressing consumer affordability. He observed, “High energy prices and cost-of-living pressures may delay the energy transition, requiring strategies to secure investment in renewable infrastructure and government intervention.”
Anna Collyer (AEMC) also highlights the necessity of balancing the pace of transition with economic realities, ensuring that the shift to renewable energy does not disproportionately impact household budgets. She suggests that targeted financial support or subsidies for low-income households could be part of the solution.
Leveraging innovation
Rachel Watson, incoming CEO of Hydro Tasmania, underscores the role of technological innovation in accelerating decarbonisation efforts. She states, “Promising technologies like batteries, hydrogen, and grid digitalisation can accelerate decarbonisation, enhance grid stability, and reduce emissions.”
Solstice’s Phaedra Deckart is excited by the opportunities of biomethane, having recently entered into a partnership to develop a renewable gas plant. She says the Westbury BioHub will provide “a decarbonisation pathway for hard-to-abate sectors, such as those requiring industrial high-heat that cannot be met with electricity”.
Investing in and deploying these technologies is crucial for enhancing grid stability, reducing emissions, and facilitating a smoother transition to a low-carbon energy system.
Role of gas in the transition
Damien Nicks of AGL Energy has pointed out that gas will be essential to getting through the next stage of the transition: “Gas will play an important role in the firming of large-scale renewables through the transition. Gas peakers provide the firm capacity the power system needs to support grid-scale wind and solar.”
Fortescue Energy’s Mark Hutchinson wants to see less dependence on emission-heavy fuels. He stated: “We must show the world we can eliminate fossil fuels and do so profitably.”
He also noted that while Fortescue is steadfast in its commitment to green hydrogen, “the economics must stack up.”
A collaborative approach
Transgrid’s Brett Redman emphasises the critical role of transmission infrastructure in the energy transition, advocating for a collaborative approach to transmission solutions and highlighting the necessity of working together to meet the challenges of integrating renewables into the grid.
Rob Wheals, CEO of Squadron Energy, has emphasised the importance of integrating regional communities into Australia’s renewable energy transition. He stated: “Regional Australia is where our heart lives… To make the move to renewables, get the communities engaged.”
He also highlighted the potential economic benefits, noting that incorporating regional communities could lead to a net gain of almost 20,000 jobs by the end of the decade.
Australia’s energy transition is a complex journey that requires coordinated efforts across industry, government, and communities. Energy Week 2025 is where you’ll hear leaders from all parts of the sector discuss the most effective pathways forward.
For more information visit energyweek.com.au
