We analyse the energy transition from coal to renewable. Our research contributes to the literature on transitions and grand challenges. Mitigating the effects of dangerous human-induced climate change requires Australia to adopt a ‘carbon budget’ of no more than 10 Gt between 2015 and 2050. To achieve this, the Australian electricity sector must reduce greenhouse gas emissions to at least net zero emissions by 2050. Australia’s strategic response to climate change will have a significant influence on greenhouse gas emissions across Asia and the Pacific. The transition to renewables has proved difficult. The Liddell case study, involving closure of an ageing coal-fired power station, shows how the transition was impeded by institutional decisions. While firm-level actors recognised opportunities, regulators resisted the transition. Our research illustrates that transitions for grand challenges may require a relational stakeholder review, beyond the concept of short-term win–wins. JEL Classification: L02, D02, Q05

Saunders and Bedford (2017) demonstrated that income levels are inadequate for some Australian households to maintain a basic standard of living. Analysing utility bills can extend this consideration of income adequacy issues given the essential nature of services such as electricity, telephony and water. This article builds on the work presented by Simshauser and Nelson (2014) about key demographic cohorts in Australia that have a high incidence of energy-related financial hardship. Our analysis indicates that energy related financial hardship is likely to be related to a combination of the following: family formation demographics; low-income (often reliant upon government income support); higher household size; and higher than average consumption. Our policy recommendations are relatively straightforward: development of tools to allow easier 'shopping around' by energy customers; cessation of credit-checking by energy retailers as a means of restricting access to energy offers; reform of state-based concessions frameworks; a lifting of income support for some key cohorts (e.g. unemployed); improvements to energy-efficiency standards; and amendments to tenancy laws to overcome potential principal-agent issues associated with uptake of new products and services such as embedded solar PV and battery storage.

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