Watt benefits? Ensuring social equity in Australian electricity markets is a report from the Centre for Policy Development (CPD) that outlines ways governments, developers and the energy sector can ensure the energy transition is fair, supports the people and communities affected, and builds social licence for long-term success.
Reaching net zero means nothing short of a complete overhaul of our energy system—rolling out renewables and storage projects at record speed. But this transformation won’t succeed without getting communities and households on board. It’s not enough for people to know they’re doing good for the climate—they need to trust that they will see real social and economic benefits in their everyday lives.
This report lays out a roadmap for ensuring the shift to clean energy is not only fast and effective, but fair for all.
Watt benefits? Ensuring social equity in Australian electricity markets is a report from the Centre for Policy Development that outlines ways governments, developers and the energy sector can ensure fairness and social license in the energy transition.
CPD’s Just Transition Framework sets out three principles for an inclusive net zero economy:
Building on the Just Transition Framework, the report explores three key themes for ensuring fairness and social license in the energy transition:
Within these themes, the report also makes practical recommendations—from scaling household payments for energy upgrades by income and wealth, to requiring government-supported businesses to deliver social and economic benefits in line with the Community Benefit Principles in the Future Made in Australia legislation.
The report also addresses questions from the National Electricity Market review, which aims to reform Australia’s electricity market to ensure reliability and affordability during the transition to renewable energy.
These changes aim to ensure that policy reforms to energy markets place people at the centre, to guarantee enduring support for the transition.
Australia’s energy transition is well underway, with billions in investment already committed to the renewable energy roll out. But change on this scale carries real risks; if it isn’t managed carefully, people and communities could be left worse off.
For the transition to succeed, it must be fair for all. Prices need to be equitable, predictable and transparent for consumers. Communities that host our energy infrastructure need a genuine voice in decisions, and support to manage the flow-on effects of these developments. Ensuring social licence can also mean faster approvals and reduced costs.
A transition built on these principles won’t just cut emissions—it will also create a stronger, fairer future for people and communities across Australia.
CPD held an online roundtable on ‘Ensuring consumers benefit in the NEM’, which convened representatives from industry, government, regulators, unions, energy experts and civil society, including Tim Nelson, chair of the NEM Review. The discussion was a thoughtful examination of some of the key issues Australia faces in ensuring the energy transition is fair, supports affected people and communities, and builds the social license critical for long-term success.
Together, participants explored some of the issues relevant to equity and social license that have no clear solution, and the actions that governments can take to achieve an equitable and fair energy transition. Below are some of the key themes that emerged from the discussion:
