Energy governance: A system in transition

Understanding the governance implications of Australia's changing energy landscape 

This primer explores why energy is increasingly a board-level issue, how Australia's electricity market is transforming, and how boards can approach energy through the lenses of strategy, risk, disclosure and capability. It also examines the opportunities created by electrification, demand flexibility, energy storage and on-site generation, and provides practical questions to support board discussion. 

These issues are becoming increasingly important as Australia's energy system undergoes a significant structural shift. For many organisations, energy is no longer solely a procurement issue. It carries strategic, legal and reputational implications, with consequences for organisational resilience, cost, and long-term decision making. Mandatory climate-related financial disclosures, together with increasing scrutiny of energy and emissions claims, are also elevating expectations of board oversight. 

As host of CGI Australia, the AICD is pleased to have collaborated with Associate Professor Tim Nelson GAICD and Dr Tracey Dodd GAICD to produce this primer for Australian boards, helping directors build their understanding of an area of growing importance for governance and oversight. 

Further insights from the authors: Tim Nelson also joined the AICD's Director Download podcast to discuss the trends reshaping Australia's energy landscape and what they mean for boards.