Australia

While Australia’s carbon intensity is in decline, it is still the highest among IEA members. The government is focused on boosting low emissions technologies under Australia's Technology Investment Roadmap.

Despite its wealth of resources, energy security concerns are on the rise. As domestic oil production dwindles and refineries close, dependency on oil product imports and global oil supply chains is growing steadily. Natural gas supply in the east coast market has become tight. To enable natural gas to play a role as a transition fuel to a low-carbon economy, the government is focusing on resource development, additional pipeline capacity and market integration. The 2020 fuel security package aims to secure long-term fuel supplies in the light of these challenges and in the context of economic recovery.

Australia’s power system faces concerns over reliability, particularly amid extreme weather events, and the need to accommodate the world’s highest per capita solar capacity. Prompted by the South Australia system-wide blackout of September 2016 and the subsequent Finkel Review, the government is implementing reforms to secure supplies, including a retailer reliability obligation, system operation adjustments, planning requirements, and post-2025 market designs to integrate higher levels of variable renewables.

The 2018 IEA in-depth review provides recommendations to help Australia guide the transition of its energy sector.

Last updated Mar 30, 2021