Why geography matters for the electricity transition?

Professor Magnus Söderberg

The electricity transition is often presented as a technological challenge: replacing fossil-fuel generation with renewable energy, storage and smarter networks. Yet it is equally a geographical challenge. Renewable resources are unevenly distributed, often located far from major centres of demand, making the location of generation, storage and grid infrastructure increasingly important. Australia’s development of Renewable Energy Zones illustrates how spatial planning can help coordinate generation and transmission investment. Geography also shapes the cost and fairness of the transition. Grid expansion requires access to land and raises difficult questions about consultation, community benefits and compensation for landowners. Ground conditions, distance, terrain, vegetation and exposure to natural hazards affect network costs, but are not always adequately reflected in regulatory benchmarking. Population density matters too: urban customers may benefit from cheaper, more reliable networks, while rural areas face higher costs and potentially different service standards. Regional differences in network costs can therefore translate into distributional consequences for customers. The speech argues that a successful transition requires not only more infrastructure, but better geographical understanding of where it should be built, who benefits and who bears the costs.

Bio: Professor Magnus Söderberg is one of Australia’s leading energy economists and Director of Griffith University’s Centre for Applied Energy Economics and Policy Research (CAEEPR), a role he has held since 2022. His research focuses on energy regulation, efficiency benchmarking and consumer responses to electricity prices. CAEEPR connects researchers with energy companies, government agencies and policymakers across Queensland and the wider National Electricity Market, supporting research and debate on the energy transition. The Centre also delivers executive education in energy and environmental economics and policy.

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