Energy took centre stage in the 2025 Federal Election, with Australia facing a choice between two contrasting energy futures. It became, as Clean Energy Council Chief Executive Kane Thornton put it, “a referendum on renewable energy”.
With the Labor Party returning to power, renewables emerged victorious – but there’s still a long road ahead to net zero, so where does the transition go from here?
As the dust settles, Energy is revisiting the Federal Government’s energy policies and election promises to explore what the next three years might hold for the sector, and shares key industry responses along with the sector’s recommendations for the incoming government.
Net zero
Australia’s current decarbonisation goals are to achieve a 43 per cent reduction in 2005 emissions levels, and net zero emissions by 2025.
Prior to the election, the Australian Labor Party confirmed that it would continue with the steps outlined in its Net Zero Plan if re-elected.
The Federal Government also said if it retained power, Australia would remain a party to the Paris Agreement and would announce a 2035 interim emissions reduction target as part of the 2025 Nationally Determined Contributions (NDCs) report.
Power generation
Decarbonising the electricity sector is the first step in the Federal Government’s plan to hit the 2030 emission target, and the industry has been powering ahead on a record number of renewable energy projects to deliver the 82 per cent renewable energy by 2030 target.
The Labor Party said if re-elected, it would continue to follow the optimal development path (ODP) outlined in AEMO’s 2024 ISP to reach the country’s net zero goals.
The full approach is detailed in the Federal Government’s Powering Australia plan, which included expanding the Capacity Investment Scheme (CIS) to deliver a total of 32GW of new, renewable capacity by 2030; establishing a new National Energy Transformation Partnership; and modernising Australia’s energy grid to support this renewable generation via the Rewiring the Nation program.
The Labor Party said if it were to retain power, it would also continue to prioritise the establishment of a multi-billion-dollar offshore wind industry.
Home battery rebates
In April 2025, the Labor Party announced it would roll out a $2.3 billion Cheaper Home Batteries Program if it were re-elected.
The program is expected to roll out from 1 July 2025, reducing the cost of a typical installed battery by 30 per cent. The Federal Government said the program is expected to result in over one million new batteries expected by 2030.
The discount is set to be delivered through the existing Small-scale Renewable Energy Scheme.
Industry response
The energy industry has congratulated the Labor Party on its re-election, while calling for action to advance the transition.
Australian Energy Council: delivering the energy transition
The Australian Energy (AEC) congratulated the Federal Government on its re-election, encouraging the government to prioritise sustainable, enduring energy policies that provide investment certainty at lowest cost.
AEC Chief Executive, Louisa Kinnear, said, “We are in the middle of an era-defining energy transformation that requires policy stability, continuity, and long-term reform that can endure beyond election cycles.
“We are in the middle of an era-defining energy transformation that requires policy stability, continuity, and long-term reform that can endure beyond election cycles. We encourage all members of the 48th Parliament to commit to working to deliver the energy transition for the benefit of Australians,” she said.
“The energy system of 2050 will be delivered by wind and solar, backed by hydro, storage and gas.”
Ms Kinnear said there is more work to be done to develop the market settings that will deliver this outcome, whilst managing the energy trilemma of affordability, reliability and sustainability.
“There is sufficient understanding across the energy industry about the critical factors that will deliver the lowest-cost transition. Now we just need consistent, enduring and coordinated policy.”
Ms Kinnear said the right market settings will provide investors with the confidence to deliver the right energy source at the right time to replace existing thermal plant like coal that will retire over the next decade and beyond.
“This approach will avoid system and price shocks and deliver least-cost outcomes for consumers.”
The AEC said its key energy priorities for the Federal Government’s upcoming term include:
- Focusing on affordability
- Harnessing consumer energy resources
- Backing the NEM review
- Prioritise system security
- Ensure gas supply for electricity generation and retail
Ms Kinnear said there is sufficient understanding across the energy industry about the critical factors that will deliver the lowest-cost transition, but now we just need consistent, enduring and coordinated policy.
“The AEC encourages the use of market-based incentives that support long-duration storage, gas supply and generation and better coordination of energy generated from rooftop solar systems in ways that work for all customers,” she said.
“We look forward to working with the Federal Government and the next Australian Parliament in support of strong, stable and effective energy policy.”
Clean Energy Council: election demonstrates support for clean energy
Clean Energy Council CEO, Kane Thornton, said the re-election provides continuity for strong and effective policy that is critical to underpin new investment in clean energy that will in turn deliver lower power prices for all Australians.
“This election was a referendum on renewable energy. The Australian people have reconfirmed their strong support for wind and solar backed by batteries, pumped hydro and a small amount of gas.”
Mr Thornton said it’s time to leave the politics behind and get on with the job of rolling out renewable energy to deliver affordable and reliable power for all Australians.
“We look forward to working closely with the government to ensure these policies maximise investor certainty and deliver lower power prices and enormous benefits to communities throughout rural and regional Australia,” Mr Thornton said.
“This also includes ensuring the effective design and implementation of the Federal Government’s promised Cheaper Home Batteries rebate program, much-needed reform to environment and planning laws and reform to the energy market to ensure clearer incentives for new investment, including for long duration energy storage.”
Energy Efficiency Council: time to focus on electrification
The Energy Efficiency Council (EEC) said the election result sets the stage for a big ramp up in ambition on emissions goals, efficiency and electrification.
EEC CEO, Luke Menzel, said the Federal Government’s previous term was marked by some significant wins on energy and emissions, including the reformed Safeguard Mechanism, vehicle efficiency standards and the CIS.
Mr Menzel said there were still a number of policies on efficiency and electrification still sitting on the to-do list, however.
“Acting on them quickly will be critical to drive down energy bills and ramp up Australia’s emissions reduction effort,” he said.
“With the nation’s trajectory to a high penetration renewable energy system now locked in, any additional cuts in carbon emissions will need to come from the demand side.
“Almost all the emissions reductions we’re expecting between now and 2030 are being delivered through renewables replacing aging coal capacity.”
Mr Menzel said post 2030, that way of cutting carbon will be largely tapped out.
“Any sort of ambitious 2035 target will need to be delivered by the demand side, especially energy efficiency and electrification.”
He nominated electrification of homes, manufacturers and food processors as low hanging fruit.
“We have the technology to pair efficiency and electrification to decarbonise vast swathes of the Australian economy, but we’re yet to see the serious policy and investments we need to get it done.
“We need an ambitious 2035 target, substantive sectoral decarbonisation plans and a raft of new policies and programs to make sure Aussie homes and businesses are set up for a net zero economy,” Mr Menzel said.
“We’re looking forward to working with the Federal Government to get it done.”
The EEC set out a comprehensive list of urgent actions for the incoming government, including:
- Upgrade homes for health, comfort and efficiency
- Support business energy upgrades
- Modernise energy governance
- Strengthen the role of the demand side in the electricity market
- Set national energy performance targets
- Align and modernise retailer energy efficiency schemes
- Accelerate commercial building efficiency
- Develop a skilled workforce
- Improve energy literacy
- Boost research and innovation
Australian Energy Producers: reliable gas supply must remain a priority
Australian Energy Producers Chief Executive, Samantha McCulloch, said the decisive election result provided an opportunity for energy policy certainty and stability in the next term of Parliament.
“Australia and our region’s economic growth and energy security needs reliable and affordable gas supply, which requires continued investment in new gas exploration and development,” Ms McCulloch said.
“We look forward to working with the Federal Government on advancing the shared goal of boosting Australian gas supply to ensure reliable and affordable energy for Australian homes and businesses, as outlined in the Future Gas Strategy and Australian Energy Producers’ election policy platform.”
Ms McCulloch said the Federal Government needed to prioritise implementing actions from the Future Gas Strategy and address the regulatory delays and uncertainty in the environmental approvals system.
“Australia has abundant gas resources, yet we face gas shortfalls this decade due to regulatory uncertainty, approval delays and policy interventions that have delayed new gas supply and damaged Australia’s investment competitiveness. Addressing these risks must be a priority for the new Parliament.”
The AEP’s election policy platform outlined the actions it believes will unlock the economic, energy security and emissions reduction potential of Australia’s gas sector, including:
- Boost Australian gas supply to ease cost of living pressures
- Restore Australia’s global competitiveness for investment
- Deliver real emissions reductions with gas and carbon capture, utilisation and storage
- Remain a reliable energy partner in our region
RE-Alliance: regional communities must be involved in the renewable transition
The RE-Alliance said the election result is an invitation to get renewables done right in the regions.
RE-Alliance National Director, Andrew Bray, said the result is emphatic in removing any uncertainty of Australia’s national direction towards an energy system primarily powered by renewable sources.
“We now need to redouble our efforts to ensure the shift to renewables is actively contributing to the strength and resilience of our regions,” he said.
“Let’s take the opportunity to work with our communities to ensure that renewable projects are done right.”
Mr Bray said polling consistently shows that people in the regions generally support the shift to renewable energy, so long as it’s done in a way that benefits communities and minimises impacts on nature.
“We look forward to working with regional MPs from all parties on practical solutions that ensure regional communities have the information and resources to participate in and benefit from the energy shift that is underway across the country,” he said.
“There is no stronger way to indicate to rural and regional Australia that you’re putting them first in the rollout.”
Rewiring Australia: Australia to get cheaper, cleaner energy
Rewiring Australia said the election result paves the way for the Australian Labor Party’s meaningful commitments, such as home battery subsidies, to be implemented.
The Federal Government made an election commitment to subsidise the cost of installing home batteries by 30 per cent, with the policy coming into effect by July 2025, and Rewiring Australia said its research found adding a battery to an average home would generate about $900 a year in savings, when working in conjunction with rooftop solar and all-electric appliances.
Rewiring Australia Founder and Chief Scientist, Saul Griffith, said that this is a good policy that will drive down power bills.
“Upfront costs are a big barrier to entry when it comes to home batteries, so knocking 30 per cent off the price of installation is a great step in the right direction,” Dr Griffith said.
Rewiring Australia also said it was relieved that the existing effective policies supporting the adoption of electric vehicles (EVs) – including the EV Fringe Benefit Tax exemption and the New Vehicle Efficiency Standard – are no longer under threat, after the Liberal Party claimed it would abolish these policies if elected.
Rewiring Australia CEO, Francis Vierboom, said the EV tax break makes economic sense for a lot of people.
“Petrol cars cost a lot of money to run, and they are also big polluters. Making it easier for people to switch to an electric vehicle makes sense for our wallets, and our air quality,” Mr Vierboom said.
Rewiring Australia also said that the continuation of a Federal Government lead by the Labor Party will also ensure the Australia remains committed to achieving 82 per cent renewable energy by 2030.
“Labor started this journey in 2022 and now it can get us closer to finishing it. We must remain focussed on expanding renewables and creating cheaper and cleaner energy for all Australians,” Mr Vierboom said.
“We are looking forward to working with the Federal Government to achieve its renewable goals, and we also want to encourage the government to continue to accelerate electrification and bill savings for Australian households – including finance that works for low income homes, a strategy for rental energy bills, and further incentives to drive down the upfront cost of electrification.
“Too many homes are missing out, and more pathways to household electrification means lower bills and lower emissions sooner.”
Read some of the opinions of the industry’s key voices in the lead-up to election, as well as a full breakdown of the major parties’ energy election promises here.
Disclaimer: this article is intended to summarise the Federal Government’s election promises and energy policies, its goal is to inform and is not an indication of any views held by Energy or its staff.
