A fair energy transition must go hand in hand with delivery at scale

The Federal Budget 2026-27 reinforces that Australia’s energy transition is well underway and that the policy focus has shifted from ambition to delivery.

This Budget recognises the structural transformation occurring across the energy system, as end-of-life generation exits and is replaced by new generation, storage and enabling infrastructure.  Replacement of aging infrastructure and the clear trajectory of increasing demand requires continued investment in the mechanisms needed to deliver the transition.

It reinforces the role of large-scale investment frameworks to bring forward new generation and firming capacity, alongside targeted measures aimed at accelerating delivery across the system.  

ENA’s modelling suggests three practical priorities to keep the transition affordable and reliable: leverage distribution‑connected resources, build targeted transmission, and secure gas for southern markets for gas-fired generation.  This efficient outlook and the combination of these actions helps avoid costly overbuilds and reduces emissions.

A clear Budget priority is removing bottlenecks and supporting system-wide reform and coordination. It commits to:

• streamlining approvals, including establishing a National EPA, progressing bilateral agreements and simplifying assessment processes;
• funding to implement the National Electricity Market (NEM) Review, helping modernise market frameworks to better accommodate a high-renewables system;
• investing in consumer energy resources (CER) with further funding for implementation of the National Consumer Energy Resources Roadmap, supporting the integration of rooftop solar, batteries and electrification into the grid; and
• targeted support for industrial decarbonisation, including backing the transition of energy-intensive facilities such as the Boyne Island aluminium smelter to new energy.

Together, these measures reflect a clear shift: from setting targets to delivering the infrastructure, market reform and system integration required to make the transition work in practice.

But as the transition accelerates, a critical challenge is emerging: ensuring it works for all Australians.

The system is becoming more decentralised and dynamic. Many households and businesses are increasingly able to generate, store and manage their own energy, while large-scale renewables and storage are being deployed across the system.

This is not a transition we are preparing for – it is already happening.  To turn back now would be costly.

Almost half of the new transmission needed is well underway.

Australians understand the need to upgrade the grid and bring on new generation and there is broad recognition that acting now will avoid higher costs in the future.

But there is also a clear expectation that the transition delivers affordable, reliable energy for everyone.

For some, new technologies are already delivering benefits. But for others, participation is more limited – raising important questions about how the costs and benefits of the transition are shared.

The gap is widening between customers who can afford solar, EVs and batteries – and are increasingly insulated from rising wholesale costs – and households and businesses without EVs, solar or batteries who will face higher electricity bills and bear a disproportionate share of costs.

In addition, the risk of demand destruction among large commercial and industrial customers particularly exposed to volatile wholesale market movements, reinforces why equity and affordability must be designed into the transition. This is not just a technical issue, removing inequity is central to getting the transition right.

The Budget sets a clear direction on delivery: accelerating approvals, progressing market reform, integrating consumer energy, and supporting industrial transformation. The next step is ensuring those efforts translate into a transition that works across the whole community.

Because ultimately, the success of the energy transition will be measured not just by what we build, but by whether it delivers for everyone.