Balancing the Energy Trilemma: Lessons from Australia’s Transition
When Rainer Korte, Commissioner at the Australian Energy Market Commission (AEMC), took the stage at the Singapore Electricity Roundtable 2025, he described the global energy transition as nothing short of a balancing act. Nations must simultaneously juggle energy security, affordability, and environmental sustainability – known in the industry as the “energy trilemma”.
Drawing from Australia’s own experiences, he offered valuable insights for Singapore and the wider region.
The South Australian experience
South Australia has emerged as a global leader in integrating renewable energy, with wind and solar now accounting for 75% of its annual electricity consumption. On nearly 300 days in 2024, renewables supplied all of the state’s power needs for at least part of the day. By 2027, South Australia is on track to achieve 100% net annual renewable generation.
This achievement, however, brings new technical challenges. Traditional generators help stabilise the system by keeping frequency and voltage steady. Without them, operators must find other solutions. These gaps require innovative solutions, from battery storage and demand response to smart protection systems.
As Mr Korte noted that the transition is not just about adding renewables – it’s about re-engineering the entire system to keep the lights on.
The role of consumers
One of the most promising developments in South Australia is the rise of consumer energy resources (CER), particularly rooftop solar. In October 2024, rooftop systems generated more electricity than the state required, with surplus power exported to neighbouring Victoria. Households now have the option to sell unused electricity back into the grid.
This creates a “win-win” scenario: Not only is this good for consumers’ wallets, it also saves the system money by reducing the need for expensive new infrastructure.
“Every household can be part of the energy system,” said Mr Korte. The challenge now is to design fair rules that make the most of this new flexibility while keeping the grid stable.
Preparing for a post-coal future
Australia’s broader National Electricity Market (NEM) faces a looming shift, with nearly all coal-powered generation expected to close by 2035. The Australian Energy Market Operator's (AEMO) Integrated System Plan outlines how renewables, storage, transmission upgrades, and gas generation will fill the gap. Market reforms are also needed so investors feel confident to back new projects and consumers continue to benefit.
The stakes are high. As Mr Korte explained, “We need to get the market settings and incentives right to unlock the capital, technology, and innovation needed to deliver a net zero future.”
Lessons for Singapore and beyond
Australia’s journey offers several lessons for Singapore as it advances its own decarbonisation agenda. First, strong planning and flexible systems are required to handle renewable energy. Second, we need to empower consumers, whether through rooftop solar, energy-efficient appliances, or electric vehicles. Most of all, we need markets and policies that keep adapting to new realities.
Singapore’s energy challenge is unique because of its limited land and reliance on imports. But by diversifying sources, tapping technology, and learning from other countries’ experiences, we can find our own balance in the energy trilemma.
A call to action
In concluding his presentation, Mr Korte underscored the urgency of the transition. He noted that the energy trilemma is the reality that countries must manage every day. It requires bold decisions, collaborative effort, and a willingness to innovate.
For governments, companies, and consumers, the message is clear: the road to net zero will be demanding, but achievable. And with the right approach, Singapore can build an energy future that is secure, affordable, and sustainable.
Drawing from Australia’s own experiences, he offered valuable insights for Singapore and the wider region.
The South Australian experience
South Australia has emerged as a global leader in integrating renewable energy, with wind and solar now accounting for 75% of its annual electricity consumption. On nearly 300 days in 2024, renewables supplied all of the state’s power needs for at least part of the day. By 2027, South Australia is on track to achieve 100% net annual renewable generation.
This achievement, however, brings new technical challenges. Traditional generators help stabilise the system by keeping frequency and voltage steady. Without them, operators must find other solutions. These gaps require innovative solutions, from battery storage and demand response to smart protection systems.
As Mr Korte noted that the transition is not just about adding renewables – it’s about re-engineering the entire system to keep the lights on.
The role of consumers
One of the most promising developments in South Australia is the rise of consumer energy resources (CER), particularly rooftop solar. In October 2024, rooftop systems generated more electricity than the state required, with surplus power exported to neighbouring Victoria. Households now have the option to sell unused electricity back into the grid.
This creates a “win-win” scenario: Not only is this good for consumers’ wallets, it also saves the system money by reducing the need for expensive new infrastructure.
“Every household can be part of the energy system,” said Mr Korte. The challenge now is to design fair rules that make the most of this new flexibility while keeping the grid stable.
Preparing for a post-coal future
Australia’s broader National Electricity Market (NEM) faces a looming shift, with nearly all coal-powered generation expected to close by 2035. The Australian Energy Market Operator's (AEMO) Integrated System Plan outlines how renewables, storage, transmission upgrades, and gas generation will fill the gap. Market reforms are also needed so investors feel confident to back new projects and consumers continue to benefit.
The stakes are high. As Mr Korte explained, “We need to get the market settings and incentives right to unlock the capital, technology, and innovation needed to deliver a net zero future.”
Lessons for Singapore and beyond
Australia’s journey offers several lessons for Singapore as it advances its own decarbonisation agenda. First, strong planning and flexible systems are required to handle renewable energy. Second, we need to empower consumers, whether through rooftop solar, energy-efficient appliances, or electric vehicles. Most of all, we need markets and policies that keep adapting to new realities.
Singapore’s energy challenge is unique because of its limited land and reliance on imports. But by diversifying sources, tapping technology, and learning from other countries’ experiences, we can find our own balance in the energy trilemma.
A call to action
In concluding his presentation, Mr Korte underscored the urgency of the transition. He noted that the energy trilemma is the reality that countries must manage every day. It requires bold decisions, collaborative effort, and a willingness to innovate.
For governments, companies, and consumers, the message is clear: the road to net zero will be demanding, but achievable. And with the right approach, Singapore can build an energy future that is secure, affordable, and sustainable.
