Call for electrification of Australian economy

The coalition of energy, industry and consumer advocacy organisations — comprising Energy Consumers Australia, Energy Efficiency Council, Electric Vehicle Council, Green Building Council of Australia, Rewiring Australia and Australian Alliance for Energy Productivity — has called on Australian governments to bolster the security, affordability and productivity of Australia’s energy systems by turbocharging electrification across the economy.

Australia’s cost of living crisis is being exacerbated by higher fuel prices for Australian motorists and businesses. If supply chain disruptions persist, experts expect Australia’s gas prices to increase as well, adding to inflationary pressure across the economy. And even if the crisis ends tomorrow, it will take time for supplies to be restored and prices to normalise.

Acknowledging the Prime Minister’s recognition of EV support as a cost of living measure, the coalition has urged governments to move quickly to help Australians make the switch to efficient electric technologies where possible.

The coalition said it is increasingly clear that accelerating the shift to electrification is critical to Australia’s economic and national security. It helps insulate Australians from volatile international commodity markets, leverages our abundant homegrown renewable energy advantage, reduces running costs, and puts Australian business on a more competitive footing.

Electric technologies also boost energy productivity, being on average three times more efficient than fossil fuel-based systems, and reducing overall energy use while increasing the energy services delivered (Ember, 2025).

Research also shows that 75% of the global energy system can be electrified now with existing technologies. Overall, around 21.5% of Australia’s energy demand is met by electricity. That is growing, albeit slowly at 0.3 percentage points per year, with patchy performance across different sectors across the economy.

The coalition said it is in Australia’s national interest to take a leap forward in the adoption of electric technologies, including electric cars and trucks, heat pumps, induction cooktops and clean industrial heat.

It called on the federal, state and territory governments to place Australia’s energy security at the top of their agenda by supporting Australian motorists, households and businesses to electrify now.

The coalition said key actions to deliver on include:

1. Helping more households and businesses to make the switch to electric cars and trucks, including through retention of the Electric Car Discount, financial incentives for freight operators to go electric and public infrastructure.
2. Accelerating efforts to get Australian homes and commercial buildings off gas appliances and onto efficient electric alternatives, including targeted support for those who face barriers such as renters, apartment-dwellers and low-income Australians.
3. Supporting manufacturers and food processors to electrify their operations where technically feasible, with a focus on clean industrial heat technologies.
4. Maintaining momentum on the rollout of renewable energy, storage and grid development, supporting supply to keep pace with rising electricity demand.
5. Investing in public communications programs to educate Australians about the benefits of electrification, and the range of support available to make the switch.

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