In the transformation of energy systems: what is holding Australia back?

Australia has had a strong GDP growth rate, is endowed with a diversity of renewable energy resources yet has been unable to unshackle its dependency on fossil fuels. Our study identifies causes underlying Australia’s underachievement in its transformation towards a renewable-energy economy. We apply a combined mixed-methods case-study and multi-criteria analysis to evaluate the greenhouse gas emissions and energy targets, policies and programs of four Australian Prime Ministers between 1996 and 2015. We identify four high-impact factors that contribute to Australia’s underachievement. The Prime Minister’s political stance on climate and energy is critical in setting the direction of government. The absence of target-driven policy frameworks results in less-effective policy outcomes. Orderly and cost-effective energy system transformation requires bipartisan, strategic long-term planning and substantial capital investment to provide policy certainty and stability that can induce new investment in renewable technologies and industries. Energy policy is primarily a political and ideological issue not one driven by underlying economic conditions. Going forward, Australia must achieve a bipartisan position on climate and energy policy at both federal and state levels. This will provide long-term certainty and stability to support investment in renewable energy and so doing achieve international emission reduction obligations. •Prime Minister’s personal climate ideology drives energy politics and policy.•Impactful renewable energy (RE) policy needs time and bipartisan support.•Renewable energy targets drive effective change and investment.•Australia remains beholden to fossil fuel industry limiting RE transformation.•Underlying economic conditions do not determine the a successful RE transition.