Australia’s energy sector is facing mounting pressure to address consumer concerns and investment shortfalls as the nation works toward its 2030 renewable energy goals, with new research highlighting a significant disconnect between public perception and the realities driving power prices.
The findings come amid a disappointing start to 2025 for large-scale renewable energy investment, which fell well short of targets in the first half of the year.
Current funding covered less than one-third of the 6–7 GW per year required to replace coal-fired generation.
In New South Wales alone, the state’s distribution networks hold 10 GW of available capacity, just below the 12 GW of renewable power needed by 2030, suggesting untapped potential to help ease cost pressures.
A survey of 1,000 Australian bill-payers, conducted by Neara — a physics-based digital twin platform for network utilities — found that 47 per cent of respondents believe renewables are increasing electricity costs.
That view contrasts with analysis showing delays to the rollout of clean energy could add up to 30 per cent to household bills.
While infrastructure upgrades (54 per cent) and renewables (47 per cent) were most commonly cited by respondents as the main drivers behind price rises, the true pressures on the market lie in aging coal generation, volatile gas markets and high labour costs.
According to the research, if coal remained the dominant energy source, household costs would be up to 50 per cent higher than current averages.
“This perception gap emphasises a breakdown in communication between the broader energy sector and the Australian public,” said Neara Co-Founder, Jack Curtis.
“Australians have been left uninformed, believing that the solutions for long-term household bill relief, including renewables and network modernisation, are the problem.
“But the onus is not on consumers to close this information gap.
“With Australia’s energy transition at a critical juncture, the industry must work as a collective to communicate how technology can unlock significant, existing capacity to reduce power bills.”
State-by-state results revealed sharp differences in attitudes.
South Australians remain most concerned about infrastructure costs (61 per cent), but — along with Tasmanians — are the most willing to pay more for renewable energy (55 per cent).
Queenslanders and New South Wales residents showed the highest resistance, with over 60 per cent unwilling to bear additional costs for a cleaner supply.
Rural Australians reported the lowest affordability rating at 4.67 out of 10, yet also the strongest opposition (67 per cent) to paying extra for renewables.
“Caution amongst New South Wales residents is understandable given the hurdles transmission and generation projects have faced,” Curtis said.
“But there’s a very real opportunity to achieve the next phase of the transition at the lowest possible cost to consumers.
“Renewable energy can and will be bought online faster to deliver real savings for Australians, but only if and when the existing network is leveraged to its full potential.
“From our analysis of New South Wales’ grid, there is upwards of 5GW within the existing grid that can be harnessed.
“If accessed, this will bring renewable generation online faster whilst reducing the overall cost of energy, and the large energy transition for everyday Australians.”
Despite rising household bills, most Australians (84 per cent) still describe their energy supply as stable.
However, with extreme weather events becoming more frequent, 42 per cent of respondents are willing to pay more for greater protection against threats such as storms, floods and bushfires.
In New South Wales, more than two-thirds said they would absorb higher costs for added resilience.
Curtis said industry responses must now focus on strategic investments to modernise networks and safeguard communities.
“Australians understand the link between climate-related events and energy reliability from their own lived experiences,” he said.
“The industry must respond with proactive, technology-driven solutions that reduce risk, strengthen the grid, and maintain resiliency throughout the next phase of the energy transition.”
