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Energy Transition 101: What Every Engineering Undergraduate Needs to Know

Australia’s energy system is undergoing the most significant transformation in its history. As the country moves away from fossil fuels and towards cleaner, more sustainable sources of energy, engineers are at the centre of this change. For engineering undergraduates, understanding the energy transition isn’t just helpful, it’s essential for your future career. 

So, what exactly is the energy transition, and what should you know as a future engineer entering the power sector? 


Energy Transition 101: What Every Engineering Undergraduate Needs to Know


What is the energy transition? 

The energy transition refers to the shift from a power system dominated by coal, gas and oil to one that is increasingly powered by renewable energy sources such as wind, solar and hydro, supported by storage, digital technologies and smarter networks. 


In Australia, this transition is happening rapidly. Ageing coal-fired power stations are retiring, while large-scale renewable projects, rooftop solar, batteries and new transmission infrastructure are being rolled out across the country. The challenge is not just building new generation, but redesigning the entire system to keep electricity reliable, affordable and secure. 


Renewables are now mainstream 

Renewable energy is no longer a niche part of the system. Australia is a world leader in rooftop solar uptake, and large-scale wind and solar farms now make up a growing share of electricity generation. As an engineering student, this means future roles will increasingly involve renewable generation design, integration and operation. 


However, renewables are variable, the sun doesn’t always shine and the wind doesn’t always blow. Managing this variability is one of the defining engineering challenges of the transition. 


MREH Site tour Australian Power institute
Australian Power institute summer school 2025 MREH Site tour

The grid is becoming more complex 

Historically, Australia’s power system was built around large, centralised generators pushing power one way through the network to customers. Today’s grid is far more dynamic. 

Power now flows in multiple directions, with millions of homes and businesses generating electricity through rooftop solar. Engineers are working on advanced power electronics, grid-forming inverters, system strength, and frequency control to keep the system stable as traditional generators retire. 


Transmission and distribution networks are also expanding and modernising to connect renewable energy zones and support growing demand from electrification. 


Energy storage is critical 

Energy storage plays a crucial role in balancing supply and demand. Batteries, pumped hydro and other storage technologies allow excess renewable energy to be stored and used when it’s needed most. 


Australia is investing heavily in both short-duration batteries for fast system response and long-duration storage to cover longer periods of low renewable output. For undergraduates, this opens pathways into power systems modelling, control systems, materials engineering and large-scale infrastructure delivery. 


Electrification is changing demand 

At the same time as generation is changing, electricity demand is evolving. Transport, heating and industrial processes are increasingly being electrified as Australia works towards net zero emissions. 


Electric vehicles, electric heating and hydrogen production will all place new demands on the power system. Engineers will be needed to plan networks, manage peak demand and design systems that can handle higher and more variable loads. 


Electrification is changing demand, - Australian Power institute

Policy, markets and regulation matter 

The energy transition is not just a technical challenge: it’s shaped by policy, regulation and markets. Engineers in the power sector regularly work alongside economists, policymakers and regulators. 


Understanding how the National Electricity Market operates, how projects are approved, and how policy settings influence investment will make you a more effective and well-rounded engineer. 


Why this matters for your career 

The Australian energy transition is creating once-in-a-generation career opportunities. Engineers are needed across generation, networks, system operations, storage, data and digital solutions, policy, project delivery and beyond. 


For undergraduates, building a strong foundation in power systems, renewable technologies and systems thinking will be invaluable. Equally important is staying curious, seeking real-world exposure through internships and industry programs, and engaging with organisations shaping the future of energy. 


The energy transition is not a distant concept, it’s happening now. As an engineering student, you won’t just witness it. You’ll help design, build and operate the system that powers Australia’s future. 

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