The big winners in electrification: Anna Skarbek’s keynote address to the Australian Clean Energy Summit

An edited extract of Anna Skarbek’s keynote address to the Australian Clean Energy Summit on Tuesday 28 July 2026.

Electrification is renewable energy’s demand-side partner

For much of Australia’s energy transition, our attention has understandably been focused on supply of the renewable generation we need.

We have been building generation, storage and transmission to replace our ageing coal and gas-fired electricity system with clean energy.

That work has always been, and remains, essential.

But the next phase of the transition is just as important.

It is about demand and how we use renewable electricity to produce the materials on which our economy depends, and to power homes & businesses and move people and products.

Electrification is renewable energy’s demand-side partner.

Renewable energy gives us clean electrons. Electrification turns those electrons into better services, lower costs, more productive industries and greater energy security.

Our goal as a nation is to develop a resilient, prosperous, zero-emissions economy that works better for households, businesses and communities.

Electrification is the next phase of the energy transition

Electrification can provide energy security from the renewable energy resources so abundant in Australia.

Electrification provides opportunity because it’s already technically possible to deploy.

Many of the technologies that burn fossil fuels today can be replaced by electric alternatives that are cleaner, more efficient and increasingly cheaper to operate.

This is not simply a matter of changing the source of energy.

Electric appliances and technologies are more energy efficient – they use less energy to provide the same service.

For example:

• an electric vehicle converts far more of its input energy into movement than an internal-combustion vehicle.
• a heat pump moves heat rather than creating it through combustion.
• electric motors and industrial equipment can provide greater precision, flexibility and control.

Electrification does not simply change where our energy comes from, it can also reduce how much energy we need to deliver the same result.

That makes electrification an energy-productivity strategy.

Electrification is energy security in action

Electrification is also energy security in action.

Australia is currently exposed to global oil prices through transport and to volatility in gas markets through our buildings and industry.

Electrification allows us to replace some of that exposure with greater use of our own renewable resources.

Diversifying our energy and relying more on renewable resources that are abundant right here.

Electrification gives Australians greater certainty and reduces exposure to fuel-price shocks over which we have no control.

Australia does not only need more renewable electricity.

We need more productive and flexible uses for it.

Electrification has that flexibility and can support the electricity system as well as depend upon it.

But to capture that benefit, the supply and demand transitions must be designed together.

Industrial electrification turns renewable advantage into industrial advantage

Industry is perhaps the most strategically important part of this opportunity.

Industry is material in terms of energy, emissions and the economy.

Industrial electrification is where Australia’s renewable-energy advantage begins to become an industrial advantage.

We recently undertook some work in Gladstone, on the opportunity of a decarbonisation pathway for industrial heat.

With a strong concentration of emissions-intensive industries, Gladstone faces both significant risks and major opportunities in the shift to low-carbon manufacturing.

A region like Gladstone requires a coordinated view of renewable electricity supply, transmission, network capacity, industrial connections, major capital investment, shared infrastructure, storage, workforce and industrial heat.

Industrial electrification is not simply a technology and equipment challenge.

It is an infrastructure, investment and regional-planning challenge that presents opportunities for action.

Industrial heat is one opportunity.

A large share of industrial heat demand, particularly at lower and medium temperatures, can be supplied through technologies such as industrial heat pumps, electric boilers, resistance heating, induction and thermal storage.

Our modelling shows that Gladstone’s industrial emissions could be cut by almost two-thirds by 2040 with a switch to low-carbon heat.

In some cases, these technologies can replace direct gas and coal combustion.

Thermal batteries are especially promising.

Thermal batteries use renewable electricity when it is abundant and relatively inexpensive, store that energy as heat and release it when an industrial process requires it.

This converts variable renewable electricity into reliable industrial heat.

It also means industry can become a source of flexible demand, drawing energy when the system is well supplied and using stored heat later.

This is important because flexibility can reduce costs for the industrial user while also improving the performance of the wider electricity system.

Our research shows that energy demand management for industrial heat could not only reduce demand at current peak periods by around 2 GW but also save Gladstone’s industries $3 million a day in operating costs.

Not every industrial process can be directly electrified today.

Some applications will require green hydrogen or other clean fuels.

But those processes we can electrify should be a priority now. 

Our homes and commercial buildings are some of the most immediate and effective electrification opportunities.

Electrification presents an opportunity to reduce costs, improve health outcomes, reduce emissions and, again, improve the performance of the energy system. 

Efficient electric technologies are already available for space heating, cooling, hot water, cooking and many other household and commercial services.

Australia’s homes are not energy efficient

Many homes were built before the introduction of minimum energy performance requirements.

The goal is not simply an electric home.

When electrification is combined with improvements to the building itself, like insulation, draught sealing, shading, efficient windows, efficient heating and cooling, rooftop solar, batteries and smart energy management, the benefits of electrification are even greater. 

It is also a comfortable, affordable and climate-resilient home whether that be new build or homes to renovate.

In NSW, our work shows that electrifying and thermal shell upgrades can save NSW households $2,138 while reducing peak demand in NSW by 4.2kW.

Current work in Victoria reminds us that electrification is not about banning technologies. 

It is about managing the replacement cycle well, so that every investment households make today moves them towards a cheaper, healthier and more resilient energy future.

Victoria’s Gas Substitution Roadmap provides one of Australia’s clearest examples of how building electrification can be managed as a long-term transition rather than an abrupt change. 

Rather than requiring households to replace working appliances, the Roadmap focuses on ensuring that, as gas appliances naturally reach the end of their life, households are supported to choose efficient electric alternatives. 

It combines changes to standards and planning with consumer information, rebates, finance and practical support, recognising that the success of electrification depends not just on technology, but on making the customer journey simple and affordable. 

The Roadmap seeks to reduce reliance on fossil gas to improve household energy performance, lower emissions and reduce exposure to future gas price volatility, while giving industry, trades and supply chains the confidence to invest and adapt over time.

The challenge is that homes are rarely upgraded all at once.

Decisions happen gradually. A hot-water system fails. A household renovates a kitchen. A property changes hands. A tenant moves in.

Each of those moments can either support a long-term transition or lock in another decade of fossil-fuel use.

The best time to plan electrification is before an appliance fails.

But unfortunately, the most common time a household faces the decision is after it has already failed.

That is why the customer journey matters so much.

The State Electricity Commission in Victoria recently launched Easy Electric SEC, a new one-stop-shop, including a digital platform, designed to help Victorian households switch from gas to electric appliances.

Switching key appliances like heating, hot water and cooking from gas to efficient electric alternatives can save Victorians up to $1,900 each year on their home energy bills – or up to $2,230 a year with rooftop solar. 

The SEC platform is free to use for all Victorians and gives households clear, personalised information to understand their energy use and potential savings. 

Users can explore electric upgrades, including potential rebates and discounts, get tailored, obligation-free quotes, and find local SEC-endorsed installers to supply and complete their upgrades.

SEC’s specialist support team is also on hand to provide free personalised guidance to help Victorians electrify their homes with confidence, at a pace and budget that suits them.

Households do not experience electrification as a policy framework.

They experience it as a series of purchasing, installation and financing decisions.

They need trusted advice, qualified installers, clear information on lifetime costs and a simple sequence for what to replace and when.

This one-stop-shop approach addresses a practical barrier that is often underestimated.

A household may otherwise need to deal separately with appliance retailers, electricians, plumbers, solar installers, finance providers, rebate administrators and energy retailers.

A one-stop shop turns electrification from a research project into a manageable household decision.

The benefits of electrification should also apply to renters, apartment residents, social-housing tenants and lower-income households need pathways to participate, particularly as new technologies like plug-in balcony solar are now tried & tested in Germany with France, Spain and now the UK are getting on board, giving renters realistic access to solar.

Equity is not separate from implementation.

If large parts of the community can access the benefits, the transition will be faster, more durable and less expensive.

Freight electrification is a finance and infrastructure challenge

Transport is another major opportunity, and freight should be a particular focus.

When we think of electrifying transport, many of us think about what we know, our own cars. 

Passenger electric vehicles can reduce household fuel and maintenance costs, lower exposure to oil-price volatility and create new forms of flexible demand.

and over time, vehicle-to-home and vehicle-to-grid technologies may allow vehicle batteries to support homes and the wider electricity system.

But freight vehicles may offer some of the largest benefits because they travel further, use more fuel and operate at higher utilisation rates.

The financing challenge is significant.

For many freight operators, the problem is not that electric vehicles have no economic case over their lifetime.

The challenge is who carries the upfront cost and technology risk for vehicles and charging.

Electric freight vehicles may cost more at the point of purchase but they also offer lower fuel and maintenance costs over time.

Traditional finance products don’t yet recognise those savings consistently.

Concessional finance, guarantees, leasing, fleet aggregation, charging-as-a-service and public procurement can help.

The vehicles that travel the furthest and use the most fuel may also offer some of the largest electrification benefits.

Freight electrification is as much a finance and infrastructure challenge as it is a vehicle-technology challenge.

From emerging concept to international momentum ahead of COP31

In 2023, there was global momentum towards tripling renewable energy and doubling energy efficiency.

In 2026, the President-designate of the annual UN climate talks has made electrification a flagship priority, including a proposed global goal to increase electricity’s share of final energy consumption to 35 per cent by 2035.

Last month in London the global Electrify Now campaign was launched. 

The Electrify Now movement is made of governments, business groups, think tanks and civil society organisations united by a mission: to accelerate the rate and rollout of electrification, and fast-track our renewable, electric future.

We Mean Business surveyed business executives across 18 countries and found overwhelming support for a rapid transition to electrified economies run predominantly on renewables-based electricity.

Renewable-energy targets tell us how much clean electricity the world needs to generate.

The electrification goal will set out how much of the global economy will run on that clean electricity.

The goal matters because it provides a demand-side partner to global renewable-energy, storage and grid ambitions.

This is an important shift in international climate policy.

As the UN climate process moves from rule making to implementation, the energy discussion is moving beyond clean-energy supply and towards the deployment of clean electric technologies across buildings, transport and industry.

The Electrify Now campaign is built around the idea that at a time of volatility, economic risk and hardship, accelerating electrification in transport, buildings and industries can support the investment case for renewable energy deployment, raise energy productivity and efficiency, and enable the transition away from fossil fuels.

Australia can show what a coherent economy-wide electrification pathway can look like 

Australia has helped build international momentum around the electrification agenda.

In 2025, the MAXimum Ambition Coalition convened by Climateworks, began working towards a high ambition COP31, the annual UN climate conference which we hoped would be held in Australia. 

MAX is an action oriented coalition focused on adopting a dynamic and evidence-based approach to develop and implement ambitious climate ideas and initiatives at COP31.

Australia’s Energy Efficiency Council, a member of the MAX group,  took a lead on showing how Australia can be an example to the world and are now coordinating the global campaign for the electrification goal.  

Australia has made important policy progress.

We have the Capacity Investment Scheme, Rewiring the Nation, the New Vehicle Efficiency Standard, the Cheaper Home Batteries Program, the Household Energy Upgrades Fund, industrial support programs and a growing set of state-based building and transport policies.

The national Net Zero Plan recognises clean electricity across the economy, electrification and efficiency as central priorities.

The next step is to connect these measures through a coherent economy-wide electrification pathway.

We need a clearer view of:

• how much electrification is expected
• where new demand will arise, and how it can be managed
• what network and infrastructure investment is required
• which technologies are ready now
• which sectors need finance or demonstration support
• and how the benefits will be shared.

We must reflect the economy we are building, not the fossil-fuel economy we are leaving behind.

Electrification demand is not an unforeseen problem for the grid.

Planning processes need to better incorporate industrial heat, electric freight, mining electrification, building gas substitution, charging infrastructure, thermal storage and flexible demand.

Renewable supply and electrified demand must be planned together.

And we need better data, faster connections, fit-for-purpose finance and a stronger focus on replacement decisions.

The challenge is increasingly not whether the technologies work.

It is whether we can deploy them at speed.

Electrification is not an end in itself. Nor is renewable energy.

The goal is better services, lower costs, productive industries and a resilient zero-emissions economy.

Renewable electricity gives Australia the foundation for our competitive advantage. 

Electrification is how we extend its benefits into our homes, our vehicles, our factories and our regions.

The global community is beginning to recognise this through the COP31 electrification goal.

Australia’s task now is to turn that ambition into delivery. 

To electrify what we can now.

To prepare the system for what comes next.

And to ensure the benefits are available to everyone.