The CEC published its latest Clean Energy Council Confidence Index today, saying renewable energy investors have expressed ambivalence about the Morrison government's net-zero by 2050 emissions target, emphasising the need for a stronger 2030 target to encourage investment.
Investor confidence rose by one point over the last six months, according to the report, from 6.3 to 7.3 out of 10, thanks to favourable state government policies.
Confidence varies depending on which state investment is in, with New South Wales ranking the highest with a score of 7.9, followed by Victoria and Queensland (6.7); South Australia (5.7); Western Australia (5.1); the ACT (5.4); Tasmania (4.9); and the Northern Territory (4.7).
New South Wales and Victoria announced targets to reduce their state's emissions by 45-50% by 2030, along with ambitious hydrogen development strategies. Victoria also announced plans to directly support three offshore wind projects across the state.
Concerns and challenges related to projects connecting to the grid were considered to be the top business challenge faced by renewable energy investors, as well as under-investment in network capacity to address congestion and constraints.
Earlier this year Powering Australian Renewables CEO Geof Dutallis told Energy News that there were very real social license issues facing the renewables industry regarding the size and scale of new transmission networks that will need to be built to support new wind and solar projects.
Transmission and renewable energy companies have faced multiple campaigns and legal challenges by landowners attempting to stop projects from going ahead, with accusations that some developer's approach community engagement as a box-ticking exercise.
The CEC said substantial delays and changes to technical requirements were also impacting projects and investor confidence.
"Reform has been slow and a lack of transmission investment is now becoming a major impediment to a smooth and low-cost energy transition," CEC CEO Kane Thornton said.
Investors also cited "unpredictable and unhelpful" government intervention in the energy market and lack of long-term integrated federal energy and climate policy.
The CEC said senior leaders were asked to reflect on the government's recently announced Net-Zero by 2050 plan, with the respondents saying it did not change their level of investment confidence, but a stronger 2030 emissions reduction target would.
The government's plan, released before the COP26 conference in Glasgow, was roundly criticised as lacking detail and ambition.
"The results of this latest survey illustrate the economic value in policy that lowers the emissions footprint of our electricity generation, supporting regional centres and creating jobs," Thornton said.
"Investors recognise the opportunities created by limiting global temperature rise to 1.5C and we're seeing that capital flow through to NSW and Queensland."
