Australia’s ambitious renewable energy targets are at risk of being undermined, according to new research commissioned by energy infrastructure provider Intium.
The research highlights concerns identified by surveyed Australian business leaders involved in energy projects. In a survey of 36 Australian business leaders involved in renewable energy projects, 75% said their renewables projects did not achieve grid connection on time.
One in five (20%) survey participants who reached the commission stage and beyond said it took over 18 months longer than anticipated to achieve successful grid connection. In addition, 70% said that the grid connection approval process could take anywhere from 13 months or more, with one-in-five (20%) saying their projects took between two and three years. Without this final step, clean energy generated from new projects cannot be delivered to the grid or consumed.
Intium executive general manager Nathan Rhodes said, “This new data supports what many developers know: not getting the grid connection process right is one of the most significant risks to Australia’s renewable energy goals.
“The need to solve this challenge spans all asset classes central to the energy transition, whether it be utility-scale solar, wind farms, Battery Energy Storage Systems (BESS), or microgrids, which must efficiently connect to the grid to deliver energy at scale.
“If we don’t address these current grid connection delays, they could pose significant risk towards Australia’s 2050 net zero goal progress. This is a nationally important issue that, in our view, deserves greater attention and public discussion.”
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The alarming reality of uncontrolled technical risk
While grid connection typically represents a smaller part of upfront capital expenditure (around 10-20%), anecdotal evidence suggests that it can account for a significant portion of a project’s risk profile, in some cases up to 50%. Respondents noted that such delays can disrupt commercial operations and erode investor confidence—adding further pressure to future projects and the energy transition more generally.
In the survey, 44% of business leaders identified “change in technical requirements” as a key risk, suggesting that unclear and evolving technical standards are a major challenge for developers. This uncertainty creates a “domino effect”, with 69% of respondents indicating that their projects missed financial close, often resulting in substantial cost overruns compared to initial forecasts. In fact, 78% of business leaders surveyed said that their network connection costs exceeded their initial financial modelling.
Additional factors called out in the research commissioned by Intium which contribute to delays in the grid connection process, include:
- Access and environmental approval (39%)
- Australian Energy Market Operator approvals and signoffs (36%)
- Initial application submission and completeness checks (33%)
- Procurement of grid connection equipment (33%).
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The urgency to streamline approvals
Australia’s 2030 and 2050 renewable energy goals will require connection delivery partners to provide greater certainty on timelines and technical assurances upfront. Respondents also noted that developers will need to ensure that their modelling and engineering outputs meet the quality required to address network’s demanding technical specifications.
The research suggests that streamlining complex processes and engaging expertise early is a key solution to reduce risk in renewable energy project delivery. Survey respondents identified the following key approaches to de-risk renewable energy projects in the National Electricity Market (NEM):
- 75% say standardised and streamlined regulatory approval processes
- 72% say improved data sharing and transparency on network capacity
- 72% say increased investment in network infrastructure upgrades.
Delivering certainty
Following Intium’s conversations with energy developers, it’s clear that many are exploring alternative approaches to grid connection delivery beyond those offered by incumbent providers. In addition, there is also frustration with aspects of the current grid connection framework in contestable markets, including perceived rigidity in commercial structures and a lack of pricing transparency.
Rhodes said, “There is strong demand for partners who can provide greater certainty on timelines and technical assurances upfront. Developers have told us that grid connection delays can derail commercial operations and impact investor confidence. In our view, the risk of not getting it right is hugely significant and must not be underestimated.
“By engaging specialist expertise from the feasibility stage through to connection, companies may be able to reduce regulatory friction and gain greater clarity and speed, helping address what many investors and developers in the industry see as one of Australia’s most significant energy bottlenecks.”
