As premiers and chief ministers gather in Canberra on Friday for the first national cabinet meeting under the new Labor government, the prime minister said there was no quick fix for the current energy issues.
Energy consumers are still being told to brace for more challenges in the coming weeks, as the Australian Energy Market Operator continues to intervene after suspending the spot price market.
Mr Albanese said the AEMO intervention will go on for as long as needed, but collaboration between jurisdictions would be essential in lessening the impacts of the power shortages.
"The states and territories, of course, all have a role to play," Mr Albanese told Sky News on Friday.
"Gas will continue to play a role in the future as we transition, gas will be important in providing that security for the system."
The prime minister said many of the issues in the energy system were due to the division in the previous coalition government.
"You can't fix 10 years of denial and delay in just 10 days," he said.
"We find ourselves in a situation whereby the grid isn't fit for purpose for the 21st century, we haven't had the investment we need in new energy."
NSW Premier Dominic Perrottet said while states and territories should have their own energy policy, a united approach was essential.
"There's always a role for the Commonwealth to have a coordinating approach when it comes to every jurisdiction, because every jurisdiction has different challenges and different needs," he told reporters in Canberra ahead of national cabinet.
"National cabinet certainly has a role to play. Obviously, each state has different challenges in relation to energy."
It comes after the state's energy minister Matt Kean was granted emergency powers to direct coal to energy generators.
The powers were granted as a precautionary measure in an effort to ensure power supply.
NSW energy consumers were told earlier this week not to turn on heavy appliances between 6pm and 8pm in an effort to conserve energy and take pressure off the grid.
Queensland Premier Annastacia Palaszczuk said while the energy system was complex, gas reserves in the state have opened up.
"Unfortunately, NSW and Victoria haven't opened up their gas reservations," she said.
"We're energy-rich and our coal companies have had record prices."
Federal Nationals leader David Littleproud said while the previous coalition government had been in power for nine years, issues impacting the energy sector recent.
"This is something that's only just emerged over the last 100 days when (Russian President) Vladimir Putin crossed the border into the Ukraine," he told the Nine Network.
"It's been exacerbated by the fact that a number of power stations had to have repairs and annual maintenance, it's all come together at one juncture."
Gas prices have soared following the war in Ukraine and other supply issues.
A number of Australian coal-fired power stations are offline because of ageing technology.Â
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