Approvals for energy projects plummets placing green targets in jeopardy

The rate of approvals for energy projects has plummeted in the past 12 months, a major report warns, casting doubt on the nation’s ability to meet Anthony Albanese’s 43 per cent emissions reductions target.

The rate of approvals for energy projects has plummeted in the past 12 months, a major report warns, casting doubt on the nation’s ability to meet Anthony Albanese’s 43 per cent emissions reductions target.

The rate of approvals for energy projects has plummeted in the past 12 months, a major report warns, casting doubt on the nation’s ability to meet Anthony Albanese’s 43 per cent emissions reductions target.

A landmark report from Infrastructure Partnerships Australia found Australia’s sluggish approvals rate for critical green projects is creating a $5bn “construction air bubble” per quarter, with billions of dollars being bogged down by state and federal governments’ red tape.

About 61 per cent of energy projects in the nation’s $121bn pipeline are stalled at the planning stage, with just 10 per cent of projects in the procurement phase.

The decline in expenditure in transport infrastructure is far outpacing the growth in the energy pipeline, creating a damaging “air bubble” in Australia’s capital works pipeline.

Industry sources said there had been an 80 per cent decrease in the number of works being ­approved, blaming planning ­approvals as the main reason.

The value of expenditure in critical energy projects reached $13bn for the past three years, which is much lower than about $24bn spent on transport infrastructure, which is also in decline, as governments and the private sector pour money into green investments.

Infrastructure Partnerships Australia chief executive Adrian Dwyer said billions of dollars’ worth of energy projects were bogged down due to sluggish planning and regulatory approvals. The nation’s ability to reach Anthony Albanese’s pledge to cut emissions by 43 per cent by 2030 was under threat, he said.

“We are projecting that slow precontracts approvals in energy are creating a $5bn-a-quarter construction air bubble as energy projects don’t arrive fast enough to replace a shrinking transport pipeline,” Mr Dwyer said.

“Time spent wading through regulatory and planning treacle is time spent not producing green electrons, and that puts the 2030 renewable energy targets at real risk of being missed.”

There is growing concern among economists and experts about the slow pace of planning approvals for Australia’s rollout of renewable energy projects.

Labor has set an energy transition target of having renewable energy generate 82 per cent of Australia’s electricity by 2030.

However, state approvals for large-scale wind and solar projects plunged by 75 per cent in the past four years, according to consultancy Rystad Energy.

Australia’s biggest energy companies this week sounded the alarm on the nation’s switch to green power revealing they expected major delays on renewable and transmission projects amid community opposition.

Opponents have been able to use planning laws, primarily in NSW to slow approvals for projects. In NSW, wind farms on average take four years to secure planning approval. Developers cannot begin construction until having secured necessary permits.