Investors 'losing patience' with slow renewables rollout, report finds

Investors in Australian renewables projects are growing increasingly impatient with the slow rollout, according to a national report. The main obstacle is the delays in connecting completed projects to the energy grid, which has led to skepticism about the Australian energy market. A survey found that projects are taking nearly 30% longer to become operational than the previous year, with the time span increasing from 14 to 18 months.

Queensland's renewable energy policies are perceived as creating a bottleneck for investors and slowing down the expected drop in energy prices. A $500 million solar and battery project in Queensland's Fraser Coast region is just one of 67 approved projects in the eastern states for the 2025-26 financial year, with a combined capacity of 35.3 gigawatts, enough to power all of Australia's 11 million homes.

However, the actual timeframe for these projects to go online is longer, taking up to 18 months. Spanish renewables firm Naturgy is investing in a hybrid project in Queensland, set to begin operations in 2028, demonstrating Australia's attractiveness as a market for renewables growth. Yet, investors are losing confidence in the changing policy landscape and the delays in grid connection, which could result in businesses and consumers paying more for power.

The Queensland government is urged to establish a statutory body to manage regional energy hubs, similar to New South Wales's EnergyCo, to expedite the process of commissioning renewable projects.