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What Australia’s Energy System Wants for Christmas

At Christmas, Australians are famous for making lists. 

Children write to Santa. Families plan road trips, grocery lists and seating charts. And governments quietly decide which policy levers they might, or might not, pull in the year ahead. 

So, as is ENA list tradition, here’s our list for 2026 (and beyond). 

We are not asking for big unreasonable promises or miracle fixes. Just a practical wish-list that is grounded in evidence, focused on fairness, and aimed at delivering an energy system that works better for all customers. 

Because the truth is this: if we pull the right policy levers now, we can build a cleaner, more flexible and more resilient system, without pushing costs onto the people least able to afford them. 

Wish #1: Use the grid we already have  

If Santa could deliver just one reform next year, it should be this: better use of distribution-connected resources. 

The evidence is clear. Leveraging our local distribution grid has the biggest impact on customer bills. 

This could include: 

  • New renewable generation connected faster 
  • Rooftop solar, batteries and EVs used more flexibly 
  • Transport electrification scaled without unnecessary upgrades 
  • Consumer Energy Resources (CER) working together, not in isolation 

When CER is coordinated through distribution networks, the system becomes cheaper, smarter and fairer. ENA’s modelling shows that better coordination alone could deliver tens of billions of dollars in system benefits over time. 

But that only happens if policy and regulation reward orchestration, not just installation. 

Wish #2: Keep building transmission, efficiently and with communities onside 

Transmission remains essential. Without it, the renewables needed to replace ageing coal simply can’t connect at scale. 

The good news is that recent analysis shows less transmission is required than previously anticipated but what is required is absolutely critical. 

Transmission unlocks: 

  • Diversity and quality of renewable resources 
  • The most cost-effective projects 
  • The scale required for the replacement of retiring coal generation 

What now matters most isn’t engineering, it’s delivery. 

That’s why our wish-list includes practical transmission planning and investment frameworks and stronger, more consistent frameworks for communities and landowners, including practical measures like CGT exception for landowners and planning approvals.  

If we want projects delivered on time and at lowest cost, transmission planning frameworks need to be robust to uncertainty and provide a clear path for new investment where needed, while rigorously testing that investments stack up for customers. Communities also need to have a fair approach to consultation, compensation and tax. The CGT one-size-fits-all approach doesn’t make the cut. Welcome changes to the planning frameworks need to deliver on the promise of reduced consultation and emotional burden on communities through ‘faster to yes and faster to no’ approvals processes.  

Wish #3: Recognise gas and the many roles it can play in the transition to keep prices down  

Gas may not feature heavily in Christmas carols, but it plays a critical firming role in Australia’s energy system and can support industry to decarbonise. 

As renewables like wind and solar accelerate and coal retires, gas helps keep the system reliable and, importantly, keeps wholesale prices lower than they would otherwise be. 

It is vital that Australia unlocks gas supply into southern markets to avoid building too much generation and storage. By using gas for critical firming of the grid, we can lower average wholesale prices by around 20 per cent.   

This isn’t about choosing gas over renewables. It’s about:  

  • Recognising the role of gas to support the transition to renewables; 
  • Securing policy for gas networks to support decarbonising industry that can’t easily electrify; and also 
  • Establishing an enduring framework for renewable gases like biomethane, including  unlocking feedstock access and supporting further market development.  

Wish #4: Get serious about equity  

Australia leads the world in rooftop solar and battery uptake. That’s something to celebrate. 

But it also creates a hard truth: households who can access behind-the-meter CER and EVs will be better off and those who can’t, could be left behind.  

That’s a serious equity challenge. 

If left unaddressed the ‘heavy lifting’ of the energy transition will be borne by renters, apartment dwellers, regional communities and small businesses.  

A fair transition means: 

  • Smarter pricing and tariff reform (including new rules to help implement improved tariff structures more quickly and flexibly) 
  • Using distribution networks to share benefits more equitably 
  • Working hand in hand with governments to target support for those who need it 
  • Tackling the structural barriers facing large-scale projects, including financing and delivery models, to bring down the price tag for the transition  

Equity doesn’t happen by default. It must be designed in good, generational policy.  

Oh, and Santa….One last thing 

Australia’s energy transition is well underway, but we haven’t crossed the finish line yet, we all need to keep our eye on the prize.  

The good news is that the levers are known. The benefits are real. And the opportunity to deliver a system that is cleaner and fairer is within reach. 

Networks aren’t asking for shortcuts. We’re asking for: 

  • Evidence-based policy 
  • Better coordination across the system 
  • A relentless focus on affordability and fairness for all customers 

If Canberra & Co can tick a few of these items off the list in 2026, it won’t just be a good year for energy networks, it’ll be a good year for Australian households, businesses and communities.