The IEA's 2012 review of Australia's energy policies and programmes finds that Australia enjoys the benefit of abundant and diverse energy resources; it is the worlds ninth-largest energy producer and is one of only three net energy exporters in the OECD. Its substantial conventional energy resource base includes coal, natural gas, oil and uranium. The country also enjoys extensive wind, solar and geothermal resources as well as large biomass and ocean energy potential.

The energy sector is a significant contributor to the Australian economy. Exports have more than tripled over the past decade and surging economic and social expansion in relatively nearby emerging economies such as China and India has driven significant demand for Australian energy and mineral resources. This boom is widely forecast to continue in the coming decades.

Late in 2011, the Australian government released a draft energy white paper, which sets out a comprehensive strategic policy framework to guide the development of the energy sector. Also in 2011, the Australian government announced a climate change plan including a wide-ranging package of clean-energy proposals and the introduction of a carbon price mechanism accompanied by significant levels of financial support for innovation in clean-energy technologies.

The scale of Australias energy policy ambitions is enormous and very costly even for a resource-rich nation. Significant investments will be needed for the clean-energy transition and building the infrastructure necessary to expand the domestic resource base. This review analyses the energy-policy challenges facing Australia and provides critiques and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.

1. Executive Summary and Key Recommendations -Executive summary -Key recommendations PART I. POLICY ANALYSIS 2. General Energy Policy -Country overview -Economy -Government -Supply and demand -Institutions -Energy policies -Energy security -Critique -Recommendations 3. Climate Change -Overview -Emissions from fuel combustion -Institutions -Policies and measures -Critique -Recommendations 4. Energy Efficiency -Overview -Final energy use -Institutions -Policies and measures -Sector policies -Critique -Recommendations PART II. SECTOR ANALYSIS 5. Renewable Energy -Supply and demand -Institutions -Policies and support measures -Renewable electricity generation -Heating and cooling -Transport -Critique -Recommendations 6. Electricity -Overview -Supply and demand -Institutions -Market structure -Market design -Planning and forecasts -Electricity security -Electricity prices -Critique -Recommendations 7. Coal -Overview -Supply, trade and demand -Industry structure -Government policies and programmes -Clean Energy Package -Critique -Recommendations 8. Natural Gas -Overview -Supply and demand -Government policies -Critique -Recommendations 9. Oil -Supply and demand -Government policies -Industry structure -Oil supply infrastructure -Industry regulation -Pricing -Emergency preparedness and planning -Critique -Recommendations PART III. ENERGY TECHNOLOGY 10. Energy Technology Research, Development and Deployment -Institutional framework -Policies and programmes -Strategy and programme evaluation -International collaboration -Critique -Recommendation PART IV. ANNEXES Annex. A. Organisation of the review Annex B. Energy balances and key statistical data Annex C. International Energy Agency "Shared Goals" Annex D. Further notes to Chapter 5 on Renewable Energy Annex E. Carbon capture and storage in Australia Annex F. Glossary and list of abbreviations