Technology, AI, collaboration and investment drives Australia’s energy transition: ABB research

Australia’s energy transition is gaining momentum, marked by strong commitment for the adoption of technology advancements, growing investment, an expectation to use more renewable energy and collaboration across the energy ecosystem. These findings are drawn from the Asia Pacific Energy Transition Readiness Index 2025, a regional industry research project conducted by ABB’s Energy Industries division.

The research reveals that commitment in Australia for investment in energy transition initiatives is strong, with 99 per cent of respondents expecting to increase efforts within the next three years, while 69 per cent plan to allocate more than 10 per cent of their total capex over the next five years.

The Asia Pacific Energy Transition Readiness Index 2025 surveyed more than 4,000 business leaders responsible for automation, electrification, digitalisation, and sustainability strategies across 10 industries and 12 markets, including Australia. Using 20 indicators grouped under Strategy, Technology and Infrastructure, Finance, and Talent, the Australian results highlight the country’s transition acceleration, driven by a supportive policy environment and growing business confidence.

“Australia’s headline is momentum – with bold and diverse investment, a focus on technology and AI adoption, and private-public collaboration,” said Aaron Trueman, Vice President of ABB’s Energy Industries division in Australia. “Efforts to advance the energy transition are evident among industry players through their willingness to invest across multiple transition initiatives. ABB is committed to enabling reliable, affordable and sustainable progress. Now it is time to execute and deliver a brighter, cleaner future for all Australians.”

Technology and automation stand at the heart of Australia’s developing energy ecosystem. 68 per cent of respondents rank technological advancements as a top three driver for the country to accelerate its energy transition journey, while 51 per cent believe AI and automation will play a significant role in enhancing existing technologies and processes to support energy transformation efforts.

Australia has set a national target to reduce emissions by 62-70 per cent by 2035 compared to 2005 levels. This regulatory clarity enables organisations to establish credible pathways toward net-zero goals. Optimism towards renewable energy is also rising, with 73.6 per cent of respondents anticipating increased use of renewables within the next five years. This underscores the need for timely action and adaptive measures to support this shift.

Respondents also identified the leading low carbon energy sources or energy vectors in Australia. These are solar PV (58.9 per cent), wind (56.8 per cent), hydropower (46.7 per cent), green hydrogen (41.1 per cent) and ammonia (21.5 per cent). These findings align with how the policy framework builds efforts to promote renewable energy in the next decade. The Renewable Energy Target scheme is targeting an extra 33,000 gigawatt hours (GWh) of electricity from renewable sources every year from 2020-2030.

More than half of respondents (57 per cent) have an energy transition plan and a sustainability plan (52 per cent) in place. There is also strong confidence in tracking progress, with 83 per cent trusting their technology and sustainability data.

A successful transition requires skilled and adaptable talent. 81 per cent of respondents in Australia express a strong need for green-skilled professionals, while 49 per cent are already actively recruiting talent with sustainability expertise. The competitive job market offers organisations a prime opportunity to lead innovation and drive impactful change in the energy transition.

Collaboration across the industry is also seen as essential – 61.4 per cent report active collaboration with vendors, universities and other stakeholders to strengthen their transition capabilities, while 70 per cent identify public-private partnerships as one of the top three untapped opportunities.

Conducted between May and June 2025, the study demonstrates Australia’s commitment to the energy transition. Unlocking the full potential of this transformation will require continued investment, renewable adoption, technology innovation, and sustained collaboration to build the skilled workforce and resilient infrastructure necessary for a low-carbon future.