Australia’s transition to a net-zero energy system will require more than technological change — it will also require new governance approaches, resilient energy systems, and significant transformation across industries and the workforce.
The Transition Dynamics report explores the institutional, economic and social changes needed to support Australia’s energy transition. It examines how governance structures, risk management, industry transformation and workforce development will shape the pace and success of the transition.
The report highlights that Australia’s current market-led governance model has contributed to fragmented progress and policy uncertainty. A coordinated national approach that integrates research, policy and industry collaboration will be essential to accelerate change. It also emphasises the importance of building resilient energy systems capable of responding to climate events, supply chain disruptions and emerging technological risks.
By reviewing both Australian and international research, the report identifies critical research gaps and opportunities that could strengthen Australia’s ability to navigate the transition while maintaining economic prosperity, energy security and global competitiveness.
The Transition Dynamics report aims to examine the structural changes required to support Australia’s energy transition and identify priority research areas to guide future policy and industry development.
The report seeks to:
- Review existing Australian and international research relating to governance, industry transformation and risk management in the energy transition.
- Identify critical research gaps that may limit Australia’s ability to deliver a rapid and resilient transition to net-zero energy systems.
- Examine governance models and institutional arrangements that could better coordinate policy, research and industry action.
- Explore risks associated with the transition, including economic, geopolitical, social and energy security challenges.
- Assess how industries and labour markets will transform, including the skills and workforce development needed for a clean energy economy.
- Highlight opportunities for interdisciplinary research and collaboration to support long-term transition outcomes.
These aims contribute to the broader Australian Energy Transition Research Plan by identifying how governance systems, industries and institutions must evolve to support a successful transition.
The Australian Energy Transition Research Plan (2021), developed by the Australian Council of Learned Academies (ACOLA) in consultation with key stakeholders, identified key research priorities across three themes. This paper, on Transition Dynamics,
expands the third theme, reviewing existing research to identify key research gaps to address immediate and strategic needs of research users and consumers and outlining what opportunities can be realised through Australia addressing these priorities. This theme discusses the governance structures required to support the transition, how the economic, health and social risks of the transition will be managed, and how industries and employment will be transformed.
The report’s key findings validate the need for further research insights especially on how bottom-up approaches and advances in urban transition can be enhanced to drive the energy transition in Australia and support greater energy system resilience. International literature provides a wealth of examples, approaches and frameworks which can be utilised in the Australian context. The market governance system that has characterised Australia’s energy transition is associated with slow and fragmented process for transition outcomes. The absence of a clear direction of energy transition in Australia has been affected by political divisions, regime resistance to adaptive change, and a disconnect between climate and energy policy. This is one of the key risks for Australia’s energy transition, alongside unexplored implications in the areas of energy security, geopolitics, economic and social aspects related to the supply of key metals and minerals, and energy justice.
While there is some research into the resilience of the Australian energy system, additional insight is required into how an evolving energy system relying mainly on clean energy will adapt to chronic stresses and extreme events, including the COVID-19 pandemic.
Australia has relied on bilateral energy partnerships to maintain its status as a trusted partner in global energy supply chains. Still, its strategic weakness on climate policy is challenging its status as a trusted partner in the Pacific. Further research is needed to explore other avenues for Australia to enhance energy cooperation with current and future partners. International literature provides insights on relevant skills required for the transition, as skills shortages and workforce requirements are increasingly considered domestically. There is also a timely debate within Australia regarding the need for self-reliance in clean energy industry capability. Further research is required to balance the degree of self-sufficiency while maintaining international competitiveness. Australia has many opportunities to export clean energy industry skills and capabilities. Finally, the Australian energy research community can benefit greatly from engaging with energy transition lessons in other countries, including Germany’s Energiewende.
In pursuing research on Transition Dynamics, a mix of urgent and more strategic local and international research across all disciplines needs to be pursued, including multidisciplinary and interdisciplinary considerations. The energy transition needs to happen at a rapid pace and scale, and insights derived from this project and the Research Plan will provide important knowledge for further and future domestic and global transitions.
Emeritus Professor Sue Richardson
AM FASSA
Emeritus Professor Kenneth Baldwin
FTSE Emeritus Professor of Research School of Physics at The Australian National University
Distinguished Professor Fran Baum
AO FAHMS FASSAFern Beavis
