Australia's Chief Scientist Alan Finkel has vigorously defended his energy review, saying the crisis can be solved within three years and that going back to coal is not the answer.

However, the states and federal governments continue to fight over the right solution to a crisis that is fueling higher power prices and the risk of blackouts during the summer.

The closure of Hazelwood Power Station and Coal Mine in the Latrobe Valley, Victoria, left a massive gap in Victoria's energy mix. Arsineh Houspian

Dr Finkel was speaking at an energy summit attended by government and energy industry heads in Sydney on Monday.

Australia's chief scientist Alan Finkel, who has made a series of recommendations, said adherence to his proposed strategy and policy mechanisms could defuse energy pricing and supply issues.

Energy Minister Josh Frydenberg say the Clean Energy Target may not be implemented.

"Three years from now we expect a full recovery of the energy market," Dr Finkel said, calling his review 'Fifty Shades of Finkel'.

"Just going back to coal is not the solution.The revolution is under way, and cannot be stopped," he said.

Dr Finkel's views were backed by South Australian Premier Jay Weatherill, who has adopted renewable energy solutions to replace coal-fired power in the state.

"Like all countries, Australia is making the transition away from fossil fuel energies," Mr Weatherill said.

Chief Scientist Alan Finkel says the power issues can be solved within three years. Ben Rushton

Australian Energy Market Operator chief executive Audrey Zibelman outlined the rapidly changing generation mix during the past decade, and the shrinking role of coal compared with other energy sources.

However, former federal resources minister, and chairman of the Queensland Resources Council, Ian Macfarlane highlighted the role High-Efficiency, Low Emission (HELE) coal plants, also known as clean coal, could play in the energy mix.

However, as states and the federal government refuse to collaborate, and develop a coherent policy on coal and renewable energy, the three-year timeline is being pushed back.

Even as Dr Finkel reiterated the importance of a Clean Energy Target as a key mechanism to solve the energy crisis, the future of a CET was put in doubt earlier when federal Energy Minister Josh Frydenberg hinted that it may not be implemented as the rapidly declining costs of renewables may undermine the potential for clean energy subsidies.

AGL chief executive Andy Vesey refuted Mr Frydenberg's position on a clean energy target, but not on environmental or sustainability grounds. Instead, by implementing a CET it allows for greater certainty on integrating new power sources.

"You need a CET," Mr Vesey said.

Mr Weatherill said states could go their own way if a federal plan was not implemented.

"The commonwealth should get out of the states' way," he said.

"There's no barrier to the states simply taking them and implementing [the CET] themselves.

"If it is the end of the CET, then we should get cracking."

However, NSW Energy Minister Don Harwin said a federal CET was still the best way forward.

"A state-based CET would be the second best option," Mr Harwin said.

"Our preference is for a sensible national plan."

Battery storage was also touted as was one of the pillars in the nation's future energy mix with Mr Fydenberg saying it would play a key role. This was supported by AEMO chief executive Audrey Zibelman, who said: "It used to be going off the grid was done by a few isolated people, or tree huggers, that's not true anymore."

"It's the mums and dads; companies like Ikea, Google, and Amazon, they are talking about going green and sustainable as they see it as a bottom line advantage," Ms Zibelman said.

Mr Weatherill also pointed to the business case of the state's Tesla Powerall project, which is the largest single battery storage installation in the world.

Government agreements with Shell, Origin, and Santos last month to secure domestic gas supply also came under the microscope.

Mr Macfarlane said the agreement had done little to cut high gas prices.

"I don't subscribe to the belief we will see lower gas prices in the next decade," he said.

Opposition Leader Bill Shorten reiterated his calls for the government to pull the trigger on the Australian Domestic Gas Security Mechanism, a tool which Mr Frydenberg described as like "the 'Sword of Damocles' hanging above [the gas companies]" to be used "if we don't get what we want".