Australia has an opportunity to switch its energy system from one based on fossil fuels to one that depends on renewable energy. We need to make this shift to maximise the use of Australia's various natural resources and present energy infrastructure. It also coincides with worldwide efforts against climate change.
In this article, we'll discuss Australia's energy transition strategies, progress and goals, as well as the challenges and opportunities that lie ahead. We’ll also explore how energy transition projects are often delayed due to a lack of funding, confusion about policies and the need for new infrastructure.
With the growing momentum behind green energy and infrastructure, recent policy changes and government commitments are speeding up the transition. These initiatives aim to secure Australia’s energy future while also creating new economic opportunities and environmental benefits.
Beca is teaming with industry and government to tackle these challenges, building the infrastructure and solutions needed to fast-track the shift to renewables and making green energy more available to our communities.
Source: Antonio Garcia
Understanding energy transition
The term "energy transition" refers to the transition from fossil fuel energy sources like coal and natural gas to renewable energy sources like solar, wind and hydro. This fundamental step is critical for lowering carbon emissions and limiting climate change. In Australia, the energy mix is quickly changing — with a growing share of energy generation coming from renewable sources — aided by comprehensive support from both state and federal policy1.The energy transition calls for the use of green power solutions and a move to renewable energy sources in place of fossil fuels. This change brings new possibilities for development and investment in the renewable energy sector while simultaneously addressing environmental issues on a local and global scale. Meanwhile, we must not ignore the gravity of the problem of possible employment losses in the conventional energy industry. For a fair and inclusive transition, we need to develop measures to help and reskill workers who may be affected by these changes.
Australia’s Federal Budget supports these initiatives by investing $24.9 billion in climate and energy transformation2. This money funds renewable energy projects such as solar and wind farms, improves grid stability through energy storage technologies and fosters innovation in clean energy technology.
The Capacity Investment Scheme, in particular, allocates capital to the production and storage of renewable energy3. Additionally, tax incentives promote private investment in the green technology and vital minerals sectors4. These long-term financial obligations are essential for Australia to meet its environmental goals, increase its energy independence and keep its economy stable.
Government initiatives and technological innovations
An important legislative initiative, the Powering Australia plan aims to upgrade the power infrastructure so renewable energy sources can be more integrated and expand the generation and storage capacity of renewable energy in Australia5. We must implement this plan if we are serious about fulfilling our Paris Agreement obligations and reaching zero emissions by 2050.
Strong government support and technical advancements are causing major changes in the energy sector. Solar and wind power are becoming stronger competitors to traditional fuels, thanks to lower costs and greater efficiency6. However, transitioning high-temperature thermal systems to green energy remains a tough challenge. The fact that solutions are still in development highlights the ongoing need for innovation in this space.
Important initiatives, including large solar farms and advanced battery storage technologies that improve grid stability, support our large-scale energy transition. The Tesla Big Battery in South Australia — one of the country’s largest lithium-ion battery storage systems — for example, has greatly improved regional energy security and supply7.
Beca also played an important part in integrating the battery energy storage system (BESS) at Victoria's Hazelwood Power Station. This project restored a historical landmark and demonstrated how battery technology can considerably improve the reliability of renewable energy sources, emphasising batteries' vital role in energy grid stabilisation.
What are Australia's key energy transition goals and examples?
Australia is moving steadily toward renewable energy, as shown by the proposed Altus Renewables Energy Pellet Plant in Mount Gambier, South Australia. This $120 million project will turn forest waste into wood pellets that can be used to make electricity, providing a green alternative to coal8. The facility stands out for its intention to run independently of the electricity grid. It’ll utilise a biomass-fired combined heat and power plant, establishing a new norm for self-sufficient renewable energy projects in Australia.
In New South Wales, renewable energy zones are set up to concentrate energy production, which enhances efficiency and reduces environmental impact9. These zones are central to Beca’s mission, offering sustainable solutions for Australia’s increasing energy demands. By boosting renewable energy production and adhering to international environmental standards, they play a pivotal role in steering Australia towards a sustainable energy future, which also reflects Beca's commitment to making every day better through innovative and sustainable solutions.
What about our goals for the future?
Australia’s stated targets are to decrease carbon, aiming to drop carbon emissions by 43% from 2005 levels by 2030 and reach net zero by 2050, actively rewriting our energy future. Concrete actions supporting these high aims include lowering the carbon footprint of the energy sector and introducing more renewable sources into the national grid.
As part of the plan, more green infrastructure like solar and wind projects will be built across the country, and investments in energy efficiency and clean technologies will be increased. Support for research and development by the government also encourages new ideas in clean energy.
Take the Oceana Gold Energy Transition Acceleration Study, for instance. Focusing on New Zealand's biggest mines, this study highlighted the value of customised, industry-specific initiatives. It showed how focused efforts might greatly reduce emissions and improve energy efficiency, hence advancing national goals10.
Tackling challenges and building global connections in Australia's energy journey
Australia faces several challenges on its path to a sustainable energy future:
- Economic costs: Switching to renewable energy is generally associated with significant initial expenses. To address this, the government might provide additional funds and incentives for renewable energy initiatives.
- Political obstacles: For energy projects to run effectively, consistent policies at all levels of government are critical. Simplifying legal processes can help prevent delays and keep projects on track.
- Infrastructure limitations: Adapting to the higher demands of renewable energy requires upgrading power grids. Strong infrastructure investments are critical for seamlessly integrating new energy sources.
- Hard-to-abate industries: Sectors such as steel, aluminium, fertiliser and long-haul aviation currently have no viable renewable alternatives for their energy and process needs.

Source: Australian Government | Infrastructure Australia
On the international front, Australia is deeply committed to reducing global emissions, as evidenced by its active participation in key treaties like the Paris Agreement11. Moreover, Australia participates in global technological collaborations that push forward renewable energy technologies and foster the sharing of strong strategies, including:
- Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact: This enhances cooperation on climate change, clean energy, defense and economic issues.
- International Renewable Energy Agency (IRENA): Since 2011, Australia has supported IRENA's mission to increase the global use of renewable energy.
- International Energy Agency (IEA): Australia collaborates with the IEA on various initiatives related to green energy policies.
- Australia-Singapore Green Economy Agreement: This agreement promotes trade and investment in green goods and services, encouraging growth in emerging green sectors.
- Just Energy Transition Partnership with Indonesia: This partnership strives for a fair transition that balances economic, social and environmental considerations.
These international initiatives are essential for Australia to meet its climate targets and establish itself as a positive example in the world's transition to sustainable energy.
The economic and social implications of energy transition
Australia's move to renewable energy is altering both its economic landscape and communal life.
Economic impact
The transition to renewable energy creates major economic prospects, with new jobs arising in industries such as solar and wind energy production, energy storage and green technology manufacturing. Government incentives and policy support are critical for attracting private investment and reviving local economies.
The expected consequences of these government initiatives include:
- Increased employment in renewable energy and infrastructure development.
- Subsidies for essential mineral processing and renewable technology manufacture increase industrial competitiveness.
- Accelerated establishment and expansion of renewable energy zones to simplify project development and promote the regional economy.
- The Australian Federal Budget's commitment to climate and energy transformation is expected to create jobs and support long-term economic growth by promoting the development of renewable energy sources and technologies2.
Social and community engagement
Social dynamics and community involvement are substantially changed by the energy transition. Projects driven by communities help to disseminate the benefits of sustainable energy more generally and encourage local involvement. By reducing pollution and associated diseases, these initiatives are absolutely vital for better public health.
Furthermore, the transition to renewable energy is expected to make energy more affordable over time by lowering electricity production costs and reducing dependency on foreign fuels. This adjustment will primarily assist low-income households by improving energy access and contributing to greater equity across communities. These improvements in the cost of energy and health results are essential for making societies stronger, and affordable energy more available to everyone.

Source: Nicholas Doherty
Navigate energy transition with Beca
Moving away from fossil fuels and towards green energy sources is critical to reducing the effects of climate change and contributing to a stable energy future. Thanks to government programs, new technologies and strategic partnerships, Australia is in a great position to be a positive example in adopting renewable energy.
As this journey of change continues, Beca stays at the forefront, bringing together innovation, creativity and teamwork to move forward in energy solutions. We work closely with our clients and the communities we serve to make sustainable energy a reality. This will eventually improve everyone's health and wealth, both now and in the future.
Stay engaged and informed as we progress through this energy transition. Together, we can shape a sustainable energy future that meets our environmental and economic needs while fulfilling our responsibilities to the planet and each other.
To learn more about how you can contribute and stay involved, get in touch with us.
Sources:
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Australian Government | Department of Climate Change, Energy, the Environment and Water - Renewables
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GHD - What does the Federal Budget mean for Australia's energy transition?
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AEMO Services - The Capacity Investment Scheme
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Australian Government | Australian Taxation Office - Hydrogen Production and Critical Minerals Tax Incentives
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Australian Government | Department of Climate Change, Energy, the Environment and Water - Powering Australia
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UNSW - Are solar and wind the cheapest forms of energy? And other FAQs about renewable
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Hornsdale Power Reserve - Home
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Beca - Energising South Australia's Green Triangle
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Australian Government | Australian Energy Regulator - Renewable Energy Zones
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Beca - A lower emissions pathway for New Zealand's biggest goldmine
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United Nations - The Paris Agreement
Authors
Rhys Davies
Energy Transition Lead and Business Director - Industrial