Is grid connection holding up the energy transition?

Grid connection delays have been identified as a major issue for Australia’s transition to renewable energy.

This finding is the result of research conducted by Australian-owned energy infrastructure provider Intium, which surveyed 36 Australian business leaders involved in renewable energy projects.

75% of those surveyed said their renewables projects did not achieve grid connection on time. Of those who reached the commission stage and beyond, one in five (20%) 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 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.

“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,” said Nathan Rhodes, Executive General Manager at Intium.

“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,” Rhodes explained.

“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.”

A knock-on effect

While grid connection typically represents a smaller part of upfront capital expenditure (about 10–20%), Intium said anecdotal evidence suggests 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 can create 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.

The research identified several additional factors that contribute to delays in the grid connection process, including:

• 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%).

Why it’s critical 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. Survey respondents also noted that developers will need to ensure that their modelling and engineering outputs meet the quality required to address networks’ 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. Respondents identified the following key approaches to de-risk renewable energy projects in the National Electricity Market (NEM):

• standardised and streamlined regulatory approval processes (75%)
• improved data sharing and transparency on network capacity (72%)
• increased investment in network infrastructure upgrades (72%)

Delivering certainty

Intium said many of the energy developers it spoke with 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 was strong demand in the sector for partners who could 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,” he warned.

“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.”

Intium commissioned Lonergan Research to conduct the research in accordance with the ISO 20252 standard. Lonergan Research surveyed 36 Australian business leaders involved with renewable energy projects. Surveys were distributed throughout Australia, including both capital city and non-capital city areas. The survey was conducted online among members of a permission-based panel between 4 August 2025 and 2 September 2025.

In addition, Intium engaged Rennie Advisory to undertake qualitative research into the needs of potential generation connection clients. Interviews were conducted with eight developers with projects in the NEM to gain qualitative insights.

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