Transmission, planning delays spook renewables investors

Solar panels and wind turbines pictured with electricity transmission towers in the background (future made in australia)
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According to Clean Energy Investor Group’s (CEIG) latest member survey, transmission delays and slow planning processes are the biggest issues holding back capital, closely followed by costly and slow grid connections and lengthy environmental assessments.

Investors overwhelmingly (90%) viewed the re-election of the Federal Labor Government as a positive sign for the industry noting Australia was seen as just “somewhat attractive” for investment due to regulatory complexity, infrastructure constraints such as transmission, and commercial risks.

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Transmission delays and state planning process were ranked as the biggest obstacles to clean energy investment in 2025, with Environment Protection and Biodiversity Conservation (EPBC) process not far behind.

The survey shows that New South Wales currently ranks as the most attractive state for clean energy investment, following their updated NSW Renewable Energy Planning Framework—overtaking Queensland, which ranked first in 2024.

CEIG CEO Richie Merzian said, “NSW has made progress with clearer policy direction and recent planning reforms… The recent legislative changes and uncertainty in Queensland have weighed heavily on investor confidence, despite the Queensland Government’s claims it remains open for business.”

Onshore wind remains the top-ranked technology for investment, followed closely by batteries in second and solar in third, while offshore wind has moved up the ranks from sixth to fifth as government support strengthens.

“As Federal Parliament returns next week, investors are sending a clear message: Australia cannot afford more delays to its renewables rollout,” CEIG CEO Richie Merzian said.

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“Australia remains highly reliant on foreign investment for renewables, with over 70% coming from overseas. If the nation continues to be just somewhat attractive for investors we can expect that global capital to flow elsewhere, to other jurisdictions that are rolling out renewables and transmission with speed and scale.

“Investors are focused on technologies like wind, batteries and solar that are proven, scalable, and ready to plug and play. Policy-makers should be focused on removing the barriers that are impacting their delivery.”

Read the full report here.

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