The Abbott government will call for a more "productive" use of Australia's energy resources in its energy white paper, arguing for more competition to lower electricity prices.
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Industry Minister Ian Macfarlane is set to release the paper on Wednesday, seven months after a green paper argued that privatisation of remaining state-owned electricity assets was key to reducing electricity costs.
An extract of the final document says that more competition and investment will create innovation and new jobs in Australia's energy market.
The Australian Chamber of Commerce and Industry (ACCI) in its submissions to the government has favoured full privatisation of electricity assets.
ACCI's director of economics and industry policy John Osborn said he hoped the government's recommendations on privatisation would carry over into the white paper and would "restore Australia's energy competitiveness".
"Business expects to see a white paper that outlines important reforms to ensure our electricity and gas markets are effective, competitive, and can contribute toward a more productive economy," Mr Osborn said.
"Unnecessarily high electricity prices are hurting business and lowering the delivery cost of energy through market-based reforms must be our national priority."
The paper will likely divide industry and environment groups at a time when the government remains in deadlocked negotiations with Labor over cutting Australia's renewable energy target (RET).
Mr Macfarlane has previously argued that an over-supply of electricity justified changes to the RET, despite growing calls from the energy sector for assistance to close old coal-fired power stations and thus help address the over-supply problem.
ACCI is among the organisations that have taken a "fuel neutral" approach to energy, but groups such as the Climate Institute criticised the green paper for its failure to highlight the need to end fossil fuel use as Australia heads into global talks for a post-2020 climate change agreement.
"We'll certainly be looking to see whether they've picked up their vision beyond 2020 because that's now the real world," Climate Institute chief executive John Connor said.
"Energy is a key – if not the key – area in which decarbonisation and getting to net zero carbon pollution will be important by 2050.
"This is where the renewable energy target has really been a proxy for the seriousness with which the government is taking climate change."
The extract from the white paper supplied by Mr Macfarlane's office highlights "a lower cost, business friendly environment with less regulation, lower taxes and more competition", a better skilled work force, improved infrastructure and "innovation and entrepreneurship" as major considerations in future energy policy.
