Elephant in the room? No energy policy

Infrastructure Australia's 2019 Audit highlights 11 energy challenges but identifies only 8 opportunities for reform.

Nigel Pugh · Venture Insights1 August 2019Period: August 20198 min read

Last updated 10 June 2026

63%↑

Increase in household electricity prices over the past decade

18th↓

Australia's global rank for ease of doing business in 2019

Locked

+1more stats

Companies covered:Infrastructure AustraliaVenture InsightsASICAPRAReserve Bank of Australia

Abstract

This report reviews the energy component of Infrastructure Australia’s 2019 Audit, highlighting the critical lack of a coherent federal energy policy. While electricity prices have risen 63% in the past decade, the Audit identifies 11 major challenges but only 8 opportunities. Venture Insights argues that the transition to renewables and distributed energy (solar and batteries) represents a significant economic opportunity that is currently being inhibited by policy uncertainty and a continued focus on legacy fossil fuel assets.

Key Takeaways

Australian household electricity prices have surged by 63% over the last decade, driven by network and wholesale cost increases.
Federal policy uncertainty remains the primary inhibitor of efficient investment deployment in the energy sector.
Distributed energy resources, including residential solar and battery storage, are critical for reducing long-term household costs.

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Frequently Asked Questions

Energy overheads are a primary margin constraint, as household electricity prices have surged 63% over the last decade. This volatility contributes to Australia’s 18th-place global ranking for ease of doing business, signaling a critical need for corporate energy autonomy.

Renewables and demand-side management are the most effective levers for lowering electricity expenses. Transitioning to distributed solutions, specifically solar and battery storage, represents the dominant opportunity to reduce costs for the next 15 years.

The 2019 Audit identifies 11 critical challenges but offers only 8 opportunities, reflecting a lack of coherent federal strategy. Without a government master plan for a flexible network, businesses remain exposed to the 56% real-term increase in electricity unit prices seen over the last ten years.

Elephant in the room? No energy policy

Abstract

Key Takeaways

Frequently Asked Questions

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