Prime Minister Anthony Albanese(left) and opposition Liberal-National Coalition leader Peter Dutton(right) have different energy policies. (Image: Dutton, Albanese social media)
Australia's federal election has brought a stark contrast in energy policies between the two major political coalitions. The ruling Labor Party plans to ramp up investments in renewable energy—focusing on wind, solar, and battery storage—while the opposition Liberal-National Coalition is proposing to overturn the country’s long-standing nuclear ban and build Australia's first nuclear power plants, signaling a bold shift in the nation's energy strategy.
Labor to boost clean Energy and grid resilience
According to Climate Action Tracker (CAT), Australia is currently falling short on policy, implementation, and its Nationally Determined Contributions (NDCs), putting its 2050 net-zero emissions target at risk. Against this backdrop, the two major political blocs are offering divergent energy agendas.
Prime Minister Anthony Albanese's Labor Party plans to invest AUD 35 billion (about USD 22.4 billion) over the next five years to increase the share of renewables in the electricity mix from 46% to 82%. The plan includes measures to strengthen grid resilience, promote household battery adoption, and expand virtual power plant participation—aiming to cut emissions while lowering electricity bills for consumers.
The Liberal-National Coalition has proposed building nuclear power plants to replace coal-fired power generation.(Photo: iStock)
In a rare move, the opposition Liberal-National Coalition, led by Peter Dutton, has introduced nuclear energy as a key campaign issue. The plan includes constructing five large-scale nuclear reactors and two small modular reactors (SMRs) to replace retiring coal-fired plants, with the first units potentially online by 2035. Due to the long lead time required for nuclear deployment, the Coalition is also advocating for a delay in coal plant retirements.
Modeling by consultancy Frontier Economics, commissioned by the Coalition, suggests that post-coal, nuclear would make up 38% of national power capacity, with renewables at 54% and the remainder split between energy storage and natural gas (8%).
Nuclear plan faces regulatory hurdles and public skepticism
Currently, nuclear power remains prohibited by Australian law, and public sentiment appears to be strengthening against it. The 2024 National Climate Action Survey found that 59% of Australians support maintaining the nuclear ban, an 8-point increase from the previous year. Even among Liberal voters, over a third either oppose nuclear power or have no view at all.
Australia is the world’s second-largest coal exporter after Indonesia, making coal regions a key political battleground. The Hunter Valley in New South Wales, a major coal hub, has become a focal point in the election. With mine closures threatening up to 50,000 jobs, the debate over a just energy transition has intensified. Voter attitudes toward nuclear and renewable energy in these regions may prove decisive and are being closely watched.