Australia’s renewable energy targets are at risk because some renewable energy projects did not achieve their grid connections on time.
In a survey of 36 Australian business leaders, 20 per cent of 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 per cent of respondents said the grid approval process could take anywhere from 13 months or more, with 20 per cent saying their projects took between two and three years.
The new research commissioned by energy infrastructure provider Intium highlights concerns identified by Australian business leaders involved in renewable energy projects.
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 a 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.”
In the survey, business leaders identified a change in technical requirements as a key risk, with 44 per cent pointing to unclear and evolving standards as a major challenge for developers.
This uncertainty creates a domino effect, with 69 per cent of respondents indicating that their project missed financial close, resulting in substantial cost overruns, and 78 per cent said that network-connection costs exceeded initial modelling.
Survey respondents also cited additional factors that contributed to delays in the grid connection process, including access and environmental approvals and Australian Energy Market Operator approvals and sign-offs.
Rhodes concluded that there is a strong demand for partners that can offer greater certainty on timelines and technical assurances.
“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,” he said.
