Compare Energy Plans
How Australia’s energy strategy stacks up against the EU, US, and Asia
Australia is moving toward a cleaner, more resilient energy system - but how does our strategy compare to major economies like the EU, US, and key Asian nations?
Looking globally helps identify gaps, strengths, and opportunities. As the energy world rapidly evolves, policy direction, speed of infrastructure deployment, technology support, and emissions reduction approaches all reveal how well Australia is positioned to stay competitive, affordable, and climate ready.
Australia’s energy strategy: A snapshot
Australia’s energy transition is marked by:
- Net zero target by 2050
- Strong growth in rooftop solar and battery storage
- Closure of aging coal power plants
- Major focus on renewables zones, offshore wind, and transmission upgrades
- Emerging plans for green hydrogen and clean industrial exports
- Investment in capacity markets and firming services (like gas and pumped hydro)
- Moderate national coordination, with significant reliance on state-level action
Comparing with the EU
The European Union is widely regarded as a global leader in climate and energy policy:
| Area | EU | Australia |
| Climate ambition | Binding 55% emissions cut by 2030; net zero by 2050 | Net zero by 2050, but weaker 2030 target |
| Carbon pricing | EU-wide carbon market (EU ETS) | No national carbon price; Safeguard Mechanism applies to large emitters |
| Grid and transmission | Highly integrated cross-border grid; smart grid expansion | National grid lacks interconnection; slow transmission build-outs |
| Renewables policy | Clear targets by member state; subsidies and carbon pricing | State-led renewables zones; federal support growing |
| Energy security | Big push post-Russia to shift from gas to wind, solar, hydrogen | Still reliant on domestic gas; long-term hydrogen strategy developing |
Verdict: The EU is ahead in policy integration, carbon pricing, and pan-national energy markets. Australia lags in coordinated planning but leads in rooftop solar uptake.
Comparing with the United States
The US has made major moves through the Inflation Reduction Act (IRA) and state-led energy transitions:
| Area | US | Australia |
| Incentives | IRA provides huge subsidies for clean tech, hydrogen, EVs | Limited federal subsidies; states drive rooftop solar/battery uptake |
| Technology focus | Big on carbon capture, green hydrogen, grid modernisation | Some hydrogen focus; limited support for carbon capture or EV rollout |
| Private investment | Rapid growth in private clean tech investment | Strong rooftop solar uptake but slower utility-scale renewables |
| Coal phaseout | Fast decline of coal, replaced by gas and renewables | Similar trend, but coal still dominant in some states |
Verdict: The US is accelerating with aggressive subsidies and private sector momentum. Australia’s uptake is strong in households but slower at grid and industry scale.
Comparing with Asia (China, Japan, South Korea)
Asia is diverse in policy maturity, energy security concerns, and decarbonisation pace:
| Area | China | Japan & Korea | Australia |
| Coal usage | Still building new coal; peaking before 2030 | Heavy reliance, slow phaseout | Phasing out, but slowly |
| Clean tech leadership | World’s largest solar/wind manufacturer | Investing in hydrogen and ammonia | Strong rooftop solar but lagging in advanced exports |
| Hydrogen strategy | Major domestic rollout and export plans | Focused on importing green hydrogen | Seeking to export green hydrogen (SunCable, Pilbara etc.) |
| EV and battery industry | Dominates global EV and battery supply chain | Moderate uptake | Still low EV support; domestic battery industry growing |
Verdict: Australia is strong in resources and clean tech potential, but policy ambition and manufacturing scale still trail key Asian economies.
What Australia is doing well
- Household-led solar revolution. Australia leads the world in rooftop solar penetration per capita, reducing grid strain and household bills.
- State leadership driving innovation. Victoria, SA, and NSW are pushing hard on renewables, hydrogen, and battery zones, often ahead of federal policy.
- Emerging hydrogen export vision. Pilbara and Darwin are becoming key hubs for green hydrogen and ammonia development.
- Growing battery storage deployment. From the original “Tesla Big Battery” in SA to major utility-scale storage underway across the NEM.
What we risk falling behind on
- Grid infrastructure and connection delays. Without new transmission, projects are stalling, especially wind and remote renewables.
- Carbon pricing and emissions certainty. A lack of a universal price on carbon still sends unclear signals to investors.
- EV policy and clean transport. Australia lags most developed economies in transport emissions and electric vehicle uptake.
- Heavy industry decarbonisation. Policy and tech pathways for steel, cement, and mining emissions are still underdeveloped.
What comes next?
Australia’s energy strategy shows real promise, but also clear gaps. We excel in solar uptake and emerging hydrogen ambition, but we lag in grid coordination, transport policy, and manufacturing investment compared to global peers.
To stay competitive - and deliver reliable, affordable, and clean energy - we need to accelerate infrastructure, provide clearer long-term signals, and unlock private investment.
Unsure if your current energy plan aligns with where Australia is heading?
Call Compare Energy on 1300 790 106 to speak with an expert and find a smarter, more affordable option. Whether you're looking for a greener plan or better rates, we’ll help you make the switch.
