Moving towards low-carbon, high-efficiency energy systems, mitigating climate change, securing energy supplies, and resolving the imbalance of payments caused by energy imports, are impending problems that nations worldwide are striving hard to resolve. This paper addresses three aspects of this problem: the role of markets, prices, and governments in this energy transformation identification of policy interventions that can become productive investments in the future the potential for low-carbon, high-efficiency energy to drive green growth The paper notes that the policy choices for an energy system transformation largely relate to: carbon pricing to support technological development and investments in low-emissions energy technology policy to support research and development regulatory policy to create an enabling environment for new forms of energy production, distribution and use action by countries for investments in public infrastructure and industrial policies The authors argue that the energy supply system consists of separate elements that are inter-linked and complementary. Changes to most of these elements in ways that maintain their linkages and complementary relationships are required in order to establish a low carbon, high-efficiency economy. Additionally, it is argued that understanding the demands of such an energy systems transformation is crucial to addressing the connection between energy policy and growth.