Australian Energy Transition Research Plan 2021

AUSTRALIAN ENERGY TRANSITION RESEARCH PLAN
Report 1: The Research Plan

June 2021

The global pathway to net zero emissions by 2050 is narrow, but still achievable

The International Energy Agency (IEA) has outlined the essential priority actions for the global energy sector to reach net zero emissions by 2050. Importantly, the technologies needed to achieve substantial decarbonisation by 2030 already exist, and the policies to drive deployment have been proven. Post 2030, reaching net zero by 2050 will require further innovation and R&D, rapid deployment of current technologies, and accelerating emerging technologies to market.

Link to the Research Plan [First release]

ACOLA is pleased to present the first iteration of the Research Plan, which was made possible by the extensive contributions provided by the Learned Academies, research scholars and practical policy makers in academia, government, industry, community groups, and other key stakeholders. We look forward to the next steps in an ongoing conversation that enables the full range of relevant research organisations across government, industry and the philanthropic sector to support the urgent task of Australia’s energy transition.

Australia’s energy system is embarking on a transformation at a scale and rate that is unparalleled. Nations, leaders, industries and communities acknowledge the imperative to address global climate change through an “energy transition”. The goal is to reach ‘net zero emissions’ (nominally by 2050 or earlier) to halt further global greenhouse gas emissions, which are contributing to rising global temperatures and causing potentially irreversible damage to our societies, physical infrastructure and ecosystems.

Research Priorities Themes and Topics

The Research Plan (Report 1) identifies the urgent and strategic research priorities (and critical gaps) that require assessment for a successful Australian energy transition. The initial research priorities, as developed by ACOLA in consultation with stakeholders, are illustrated in the diagram below.

The research priorities are organised into three themes, each with three topics. While the Research Priorities are presented in a static, one-dimensional structure, the order of the list merely provides a structure to communicate a dynamic multi-dimensional proposition. It is not representative of the order of the importance of priorities.

In considering the identified gaps and highest priority areas, researchers and research funders can direct research efforts and funding to accelerate national efforts. We encourage funders to utilise the priorities in their funding guidelines and assessment of applications, to help ensure funding has the most impact or benefit.

Research Priorities
Energy System Dynamics
Social Engagement Dynamics
Transition Dynamics

Australian Energy Transition Research Priorities Themes and Topics

ACOLA | Australian Energy Transition Research Priorities Themes and Topics

Energy System Dynamics

Encompassing the technologies that we will need, how they will be integrated, and the pathways for their deployment and the associated retirement of legacy energy systems.

1. Technology
Technological innovation in renewables, energy efficiency and storage will be essential in facilitating the rate and scale of the energy transition. Mature technologies should be continually improved to increase efficiencies, while emerging technologies require sustained R&D to drive down production costs and encourage uptake. The Australian Government has identified priority technologies (and several emerging, enabling and ‘watching brief’ technologies) for government and industry support, with an annual review cycle. International innovation and market forces will also play a decisive role in the technology options and innovation pathways that Australia pursues. A close watch needs to be kept on emerging technologies, that are not currently on the radar.

2. Transition pathways
There will be multiple, dynamic social, techno-economic pathways to reach a net zero emissions energy system by 2050 or earlier (most assuming massive renewable electrification with storage and a new hydrogen industry, to replace coal, oil and gas). The actual pathway and technology mix will evolve, with the extent and timing of sectoral coupling, clean energy exports and scaling issues being significant uncertainties. These pathways should be explored in an interdisciplinary manner; considering the social, cultural, technical, geo-political and economic dynamics of these pathways; how they will evolve; and the roles that the various actors need to adopt to optimise national outcomes.

3. Systems integration
The energy ecosystem is a complex system of systems with multiple interdependencies (supply chains, physical infrastructure, markets and the regulatory system and end user impacts), all now being disrupted. We need to understand how these systems interact with each other and with other sectors across the disciplines, as well as wider impacts and linkages for significant co-benefits (such as the impact of the transition on population health). Further research on the data and tools to support the transition will also be required.

Theme | Energy System Dynamics

Australian Energy Research Priorities

Topics	1. Technology	2. Transition Pathways	3. Systems Integration
Sub-topics	1.1 Policy framework 1.2 National advantages 1.3 Research focus	2.1 Scenarios 2.2 Pathway Implications 2.3 Scaling conditions	3.1 Integration 3.2 Infrastructure 3.3 Digital

Social engagement dynamics

Encompassing the policy and regulatory settings that will be required for the transition, how people (individuals, communities, regions etc) will be engaged, and how principles of equity, justice and fairness throughout the course of the transition will be developed and applied.

4. Policy and regulation
Government (Commonwealth, state/territory and local) policy and regulation can facilitate or impede a successful energy transition. We need research to support best‑practice energy-related policy and regulatory architecture within the context of the Australian political economy. Electricity markets are currently being re‑designed; while this is essential, further work will be required.

5. Communication and engagement
Effective engagement on the impacts of the transition to diverse audiences is essential. Political ambition for the energy transition remains a complex and divisive issue in Australia. We need to better understand why this issue has been so divisive, and the values, impacts and perspectives of different communities and individuals in the transition towards a net-zero economy and society. A successful transition will need effective communication, genuine engagement, community support, and consumer, prosumer and investor confidence.

6. Social licence and participation
National and local support will be critical to a successful transition, but cannot be taken for granted. The new energy system is shifting to a more decentralised system with greater choice for users in the production, storage, and use of energy. Justice, equity, fairness, health and wellbeing should apply across social and geographic contexts, with particular consideration of the impacts on disadvantaged communities or households. For an inclusive transition, we need to better understand perspectives and values to facilitate genuine engagement with, and participation of, communities, at all scales and across all sectors.

Theme | Social Engagement Dynamics

Australian Energy Research Priorities

Topics	4. Policy and Regulation	5. Communication and Engagement	6. Social Licence and Participation
Sub-topics	4.1 Stocktake 4.2 Markets and governments 4.3 Decision-making	5.1 Socio-political environment 5.2 Engagement 5.3 Confidence	6.1 Acceptance and support 6.2 Community considerations 6.3 Benefits

Transition Dynamics

Encompassing the governance structures that we will need, how we will manage the economic, health and social risks, and how industries and employment will be transformed.

7. Governance
Government, regulatory bodies, research, industry, NGO and community energy-related institutions all have important and distinct roles in the governance and management of the transition. Many, however, were established before the energy transition commenced at scale. We need to consider how current energy‑related governance structures and institutions can be optimised to enhance governance, collaboration and decision‑making. Evaluation of research translation into policy will also be important.

8. Risks
There will be risks associated with the transition, particularly as dynamic, alternate pathways continue to evolve and new risk scenarios inevitably arise. Interdisciplinary research will help us navigate the unintended or negative impacts of the transition (across areas such as health, environment, economy and society). However, the transition also represents numerous opportunities to transform our society, economy and industries. Growing a successful renewable/low emissions industry will maintain Australia’s position as a global energy exporter and encourage domestic economic growth and stability.

9. Industry
A strong, evolving Australian industry sector to support a net zero emissions economy will be underpinned by a mix of skills, capabilities, stable and strategic investment flows, collaboration across the innovation chain, and an understanding of Australia’s role in the global energy market. We will need to consider whether Australia has the necessary skills and capabilities, self-reliance, and export potential, to develop these in the required volumes, and how these might be enhanced.