Charting the course to Australia’s renewable future

Australia’s renewable energy sector is poised for transformative growth, yet many promising projects face persistent hurdles that slow progress and dampen investor confidence. From navigating complex planning approval processes to addressing environmental concerns and securing long-term financial backing, developers must overcome a range of structural and regulatory challenges.

Four of GHD's leaders across Indigenous engagement, environment, power and advisory offer practical insights into the most pressing hurdles and how we work with clients to overcome them.

Around 43 percent of the clean energy infrastructure needed to reach net zero by 2060 is expected to be located on the Australian Indigenous Estate land, forests and waters owned, managed or co-managed by Aboriginal and Torres Strait Islander peoples. This statistic alone underscores why meaningful engagement with First Nations communities is essential from the outset. Yet, in practice, many projects still approach engagement late in the process, risking trust and social licence.

Early engagement builds genuine relationships through understanding aspirations and co-designing opportunities for employment, procurement and training. Advocacy groups such as the First Nations Clean Energy Network have published principles and toolkits that outline what good practice looks like. These resources emphasise equity participation and capacity building, critical steps for creating long-term value.

Our approach includes allocating budgets for capacity development and working closely with governance bodies that often operate with limited resources. Community and First Nations engagement is integral to renewable energy development, intersecting with environmental approvals, land access, workforce participation and long-term operations. A holistic approach embeds engagement at every stage, fostering transparency and delivering lasting value for all stakeholders.

Developers who fail to secure social licence may face delays or challenges that go beyond just financial costs. Conversely, those who invest in meaningful engagement can accelerate timelines and strengthen community partnerships that last well after construction.

Another challenge for renewable energy development is the length and complexity of the approvals process, at the State and Commonwealth levels. Projects can often take two to three years to secure necessary approvals, with extensive survey requirements under legislation such as the EPBC Act. Wind projects, for example, typically require two years of bird and bat utilisation surveys under EPBC requirements. 

The challenge lies in balancing speed with environmental stewardship. Renewable projects do not receive a free pass; they are subject to the same compliance with biodiversity protections and offset obligations as any other development. Delays often occur when surveys are incomplete or seasonal data is missing, forcing proponents to repeat field work and assessments, adding months or years to project timelines.

Opportunities to streamline this process exist. Conducting robust environmental impact assessments early, with a focus on material risks, combined with effective management of design interfaces and early contractor involvement, can help reduce delays. Another promising option is the creation of an accredited pool of independent assessors, similar to the contaminated land site auditor scheme, which could support more timely reviews and improve assessment quality.

Additionally, with the Australian Parliament’s passage of the Environment Protection Reform Bills, the approvals process for renewable projects is set to become more predictable. Some provisions take effect immediately, while others will be phased in to allow further consultation and planning. This marks a major update to Australia’s environmental law by modernising approvals, strengthening protections, and providing clearer, more efficient pathways for renewable energy projects.

One approach, which our team offers, is helping clients navigate government renewables priority lists, which can assist projects identified as important to national energy goals in moving forward more efficiently. We also provide guidance on managing offset liabilities from the outset, helping to reduce unexpected challenges later in the process. These strategies, combined with strong interface management between engineering and environmental teams, help projects progress faster while maintaining environmental integrity.

As renewable penetration grows, energy storage solutions become critical to grid stability. Yet current technologies have their limitations. Lithium-ion batteries offer short to medium duration storage but are less cost-effective for long-duration needs. Pumped hydro can provide longer duration storage but comes with higher development costs and extensive environmental approvals.

Emerging technologies such as flow batteries and compressed air storage offer promise, but they require careful piloting and commercial readiness assessments. Evaluating these technologies through early testing is essential to understand their capabilities, limitations and suitability for different applications.

One of our focus areas at GHD is helping developers de-risk investments in battery energy storage systems and other innovative renewable technology solutions. For example, recent pilot projects for iron flow and vanadium flow batteries, which we’ve supported, illustrate how careful testing and evaluations can inform procurement strategies, design decisions, and effective integration with the grid with scale up.

Adequate storage is critical for renewable projects to deliver reliable power, and exploring emerging technologies in this way contributes to long-term grid stability while helping developers and investors plan with confidence.

Australia’s regulatory environment is one of the most intricate in the world, with multiple layers of federal and state legislation and differing energy policies. For overseas developers, this complexity can create uncertainty and lead to slower investment decisions.

Early engagement and advisory input can make a significant difference. Conducting capability gap analyses, assessing client readiness and planning for workforce upskilling helps prepare the supply chain well before market engagement. Guidance on regulatory obligations and meaningful community engagement further supports projects in navigating these complex requirements and securing social licence. 

From early First Nations engagement and streamlined approvals to innovative storage solutions and regulatory navigation, these hurdles are significant, but they’re not insurmountable. Success in Australia’s renewable energy sector depends not only on technical capability, but also on foresight, collaboration and a willingness to address complexity directly. Developers who take a proactive approach can transform risks into opportunities, creating projects that deliver reliable power and shared benefits for communities.

Our role is to help make that happen. At GHD, we work alongside clients from concept to commissioning, combining advisory insight with practical delivery to de-risk every stage of the renewable energy lifecycle and bring clarity and confidence to the process.

As the energy transition accelerates, the choices made today will shape the future of our grids, our communities and our climate. Approaching these challenges with a thoughtful, integrated perspective can unlock long-term value and build resilience for all stakeholders.

Ready to de-risk your next renewable energy project? Contact us to explore how our team can support your goals.