IEEFA report identifies securing PPAs as primary barrier for large-scale renewables projects progressing to construction
Type: Ppa · Technology: Solar · Country: Australia · Announced: 2026-09-16
The Australian Renewable Energy Scorecard released in September 2026 identifies a material number of renewable energy projects without power purchase agreements (PPAs) as a key impediment to progressing to construction. The Scorecard tracks renewable energy projects across Australia through key development milestones, capacity, and level of investment and employment. Across the solar and wind pipeline, the IEEFA Scorecard suggests the biggest barrier to a project's progress is its ability to secure PPAs. In the past quarter, 6% of approved projects across Australia's main grids have also been contracted, showing this is a pivotal factor constraining the scale of projects under construction to well below what is required to achieve the 82% renewable energy target by 2030. Only 25% of solar projects are waiting on one or more approvals, but the main hindrance is converting approved projects to contracted then construction. The extent of the buffer currently held by each state varies considerably, with Queensland, South Australia, Victoria, and Western Australia having materially more fully approved solar and wind capacity than required by 2030, while New South Wales and Tasmania are noticeably short on solar relative to new capacity required.
Analysis
On 16 September 2026 the Institute for Energy Economics and Financial Analysis (IEEFA) released the Australian Renewable Energy Scorecard identifying securing power purchase agreements as the primary barrier for large‑scale renewable projects in Australia. The Scorecard, a benchmarking tool, tracks renewable projects across Australia by milestones, capacity, investment and employment. The report notes that in the past quarter only 6% of approved projects on Australia’s main grids were contracted, and that 25% of solar projects are awaiting one or more approvals. The Scorecard shows Queensland, South Australia, Victoria and Western Australia hold materially more fully approved solar and wind capacity than required for the 2030 target, while New South Wales and Tasmania are short on solar relative to required new capacity.
Key points
- IEEFA released the Australian Renewable Energy Scorecard on 16 September 2026
- 6% of approved projects on Australia’s main grids were contracted in the past quarter
- 25% of solar projects are awaiting one or more approvals
- Queensland, South Australia, Victoria and Western Australia have excess approved capacity for 2030
- New South Wales and Tasmania are short on solar capacity relative to 2030 requirements
Counterparties
- Institute for Energy Economics and Financial Analysis (IEEFA) (Analyst)
- Australian Renewable Energy Scorecard (Benchmarking)
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