Energy Efficiency Rises As Australia's Economy Grows

Dept of Climate Change, Energy, Environment & Water

Australia's economy is growing while using less energy, as renewable electricity and new technologies reshape the way we produce and use energy.

Australia is getting more value from every unit of energy we use. Energy productivity improved 1.9% in 2024-25 and is now 25.5% higher than a decade ago. This means Australia now produces $462.6 million in GDP for every petajoule of energy consumed.

The latest Australian Energy Statistics show energy use fell 0.5% in 2024-25, while the economy grew 1.4%. Energy use is now 4.9% below its 2019 peak.

The way we generate and use energy is also changing. In the calendar year 2025:

  • renewables supplied 42% of electricity on our major grids
  • wind generation grew 20.9% and solar grew 12.7%.

Solar electricity generation across Australia has grown almost ten-fold over the past decade, including strong growth in both rooftop and large-scale solar.

Households are also changing the way they use energy. In 2024-25, residential electricity use rose 6.2%, while residential gas use fell 2.3%. Electricity used by electric vehicles more than doubled over the same period.

There are opportunities to build on these trends. We're working with the Australian Energy Market Operator (AEMO) on the first Demand-side Statement of Opportunities. This will look at how households, businesses and industry can use smart technology, more efficient appliances, electrification, solar and batteries could help lower energy costs for all consumers and make better use of our energy system.

This work will complement other government programs that are supporting more renewable generation and storage, including the Capacity Investment Scheme and Cheaper Home Batteries Program.

The Australian Energy Statistics provide a detailed picture of how Australia produces and uses energy, and how this is changing over time.

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.