For state and federal governments, the challenge is substantial: restoring confidence in the energy transition amidst a backdrop of inflation, delayed transmission builds, lacklustre policy frameworks and rising operational costs.  

Compounding these challenges is the frustration across regional Australia, largely fuelled by consultation practices that have left many communities feeling sidelined in the transition process. 

Despite well-intentioned initiatives, achieving ambitious targets set for 2030 and 2050 presents increasing challenges for government. For success, the energy sector must undergo systemic changes, focusing on building effective policy and regulatory frameworks, improving communication methods, and creating incentives that encourage businesses and consumers to ‘participate in’ and not just ‘benefit from’ the transition.  

Meanwhile, sentiment among leaders is evolving. Terms such as ‘community co-design,’ ‘just transition’, ‘energy equity’ may initially appear as buzzwords, but they have begun to consistently infiltrate political and industry discussions, signalling a shift towards more inclusive and equitable energy policies. 

How will this play out politically? 

The federal election (likely in early 2025) will cast energy policy directly into the spotlight, highlighting the tension between the need for rapid policy progress and the corresponding issues of recent regional and community consultations. 

The 2023 Andrew Dyer Community Engagement review, released formally in early February, underlined the importance of better communicating standards by developers and government bodies to consumers and communities. Will such reviews shift the dial on the transition? It is a wait and see situation. 

A critical upcoming milestone is the Federal Government's budget announcement on May 14. This will be a litmus test for Australia's commitment to competing on the global stage for energy resources, investments, and a skilled workforce capable of delivering our emissions targets at scale. A key question is whether the rumoured renewable budget will effectively compete with the US Inflation Reduction Act and attract industry to come to Australia. 

How can businesses approach the year ahead? 

In 2024 we will likely see an increase in compliance, particularly for those businesses impacted by the mandatory climate-related financial disclosures legislation. 

For companies to plan ahead effectively, examining energy policy through operational, policy, and communications lenses will provide a comprehensive understanding of the year ahead. Begin by assessing your energy policy (e.g. plan for renewables, reduction in usage), planning how you will communicate this stance, and then prepare to advocate effectively. 

Hugo Twopeny is a Senior Associate at York Park Group responsible for assisting clients with public affairs strategies and engagement. A former Head of External Relations at Energy Networks Australia, Hugo has a comprehensive understanding of Australia's energy landscape and the key decision makers and stakeholders. 

York Park Group is a public strategy firm that specialises in reputation, political advocacy and issues management. We have extensive experience and understanding of the Australian energy sector and how it intersects business, consumers and politics.