The investment winners of Australia's big power bills

The demand for power is only increasing, and becoming harder to supply. Just consider the extraordinary consumption of data centres, and that’s before we factor population growth and general demand for electricity use in the average Australian home.

Australia is not alone in its need for power supply – it is a global trend – but it is worth noting this is all building up at a point where we are retiring traditional power sources, like coal, and there’s insufficient alternative supplies to buffer the growing demand, such as gas or renewables.

The oil crisis from the US-Iran conflict has been a sharp reminder to Australians that we are dependent on importing the bulk of the fuel we need for transport and we should be looking to shore up our own fuel and power security.

Before investors become too concerned about this challenge, it’s worth remembering that government and businesses alike are working on this and it’s an enormous opportunity for a range of industries and companies. It’s also a theme for investors to take note of.

The size of the demand and where the opportunities lie

It’s one thing to say demand is growing, it's another to look at the data.

Energy consumption is expected to rise by 2.6% CAGR in the next five years and 3.2% CAGR in the next 10 years, with data centres to account for the largest portion of the increase in demand.

The Australian Energy Market Operator (AEMO) 2026 Electricity Statement of Opportunities highlights that data centre consumption alone is projected to grow seven-fold to around 34 TWh, it also notes that 40% of planned data centre projects have regressed or dropped out in the last year.

Australia has been traditionally dependent on coal-fired power but is working on transitioning away from this. There is currently 22.5 GGW of coal-fired capacity in the grid and 75% of this is expected to be closed by 2035 and 90% by 2040. The aim is for solar and wind generation to significantly increase, along with storage through batteries, virtual power plants and pumped hydro-electricity.

There has previously been a lack of national investment in gas lines which could put pressure on supply in coming years, despite Australia’s current position as one of the larger exporters of LNG. Woodside Energy suggests that there will be a pronounced deficit in supply in Western Australia from 2030, with southern states experiencing some supply gaps earlier as coal-fired power continues to shut off.

Gas has been identified as a critical piece in the move to renewables in Australia, outlined in both the Australian Government’s Future Gas Strategy and the Australian Energy Market Operator’s 2026 Integrated System Plan released in June this year. 

In October, Australia’s first national Domestic Gas Reservation was legislated to improve domestic stockpiles. You can read more about the potential of a gas boom in Ben Griffiths' shocking prediction from Livewire Live 2026. 

There are significant costs to sustain supply to meet growing demand, and there is $32.5 billion in large-scale renewable energy projects either financed or under construction, while Infrastructure Australia estimates there the pipeline including transmission lines, solar, wind and hydro is valued at $163 billion through 2028-2029. Bloomberg NEF suggests roughly $3 trillion in total will be required in Australian investment by 2050 (this estimate is specific to reaching net-zero).

Building for demand

Meeting demand touches a range of industries, not just what you might initially think.

Consider as a baseline, the following:

• Gas exploration and reserve development
• Upgrading and installing new gas pipelines
• Construction of solar panels (including rare earth minerals required), wind and hydro turbines and converter technology
• Supply of semiconductors
• Build and infrastructure for battery storage facilities
• Upgrades to the grid to accommodate newer energy and manage storage
• Freight and transport upgrades for electrification

Then there’s also the average Australian household who might do solar panels on the roof, install batteries in coming years, trade in their combustion engine cars for hybrids or full-electric models, upgrade any power-using devices within their households to take advantage of renewable sources of energy.

There are opportunities across the full supply chain – from critical minerals and mining (think rare earths, copper, lithium, aluminium and steel), energy suppliers and operators, equipment manufacturers, construction developers with specialisations in energy infrastructure.

Then you can look at consumer products like appliance manufacturers or electric car manufacturers and infrastructure providers.

Australian companies that could benefit

While you should do your own research and analysis, here are some Australian-listed names positioned in the energy transition to consider. Some are big established companies you might already hold, others are micro-caps and should be considered with full due diligence and awareness of the risks before investing.

Energy providers

• Woodside Energy (ASX: WDS)
• AGL Energy (ASX: AGL)
• Origin Energy (ASX: ORG)
• Mercury NZ (ASX: MCY)
• Genesis Energy (ASX: GNE)

Mining and minerals

• BHP Group (ASX: BHP)
• Rio Tinto (ASX: RIO)
• Fortescue (ASX: FMG)
• Sandfire Resources (ASX: SFR)
• Pilbara Minerals (ASX: PLS)

Infrastructure and services

• Infratil Limited (ASX: IFT)
• Downer EDI (ASX: DOW)

Equipment and manufacturing

• Energy Technologies (ASX: EGY)
• Seven Group Holdings (ASX: SGH)

Battery technology and storage

• Altech Batteries (ASX: ATC)
• AnteoTech (ASX: ADO)
• GreenHy2 Limited (ASX: H2G)
• Li-S Energy Ltd (ASX: LIS)
• Livium Australia (ASX: LIT)
• Renascor Resources (ASX: RNU)

Investing for Australia’s power bill?

There’s been plenty of gloom and doom around the Australian economy, and it’s easy to forget there are massive projects under play that could have tremendous implications for how we live and consume.

The energy transition is a long-term trend that both government and private institutions alike are investing heavily in and is a necessity for growing demand.

Are you investing in the growing demand for energy in Australia? Let me know your preferred Australian picks in the comments below.