Power dynamics: Energy governance in Australia

Australia’s energy system is being reshaped by both large‑scale infrastructure investment and the everyday decisions of households and businesses. This White Paper argues that the governance structures guiding these decisions—who makes them, how they are made and whose interests are represented—are now under significant strain. Australia’s energy governance framework was built for a more stable era, with predictable demand, slow technological change and broad political alignment. Those conditions have vanished.

As the transition accelerates, institutions designed to incrementally refine markets are struggling to deliver integrated, cross‑sectoral policy. The system is hampered by fragmented responsibilities, inconsistent policy signals, unresolved political questions, and insufficient attention to the demand side of the energy system, including how to harness the power of consumer behaviour, energy efficiency, electrification and consumer energy resources. Key voices—particularly consumers, researchers and emerging industries—remain under‑represented, and gaps in data and research further undermine decision‑making.

More than one hundred energy sector leaders consulted for this project agreed that governance reform is essential, but must be targeted and pragmatic. The White Paper avoids wholesale institutional redesign, instead emphasising that governments must lead major reforms, supported by task groups that bring together market bodies and external expertise. Effective policy also depends on a broader ecosystem—industry, advocates, researchers and civil society—whose insights and social licence are critical to navigating the transition successfully.

Download the report here.