Wind, solar and storage developers pray for breakthrough in connection delays

The clean energy industry is hoping that proposed rule changes can finally help solve connection delays that the biggest stumbling blocks in the green energy transition, and held back and added costs to wind, solar and storage projects.

The hoped for solution is the result of nearly three years of talks between the clean energy industry, the Australian Energy Market Operator and network owners to try and solve a process that had become too complex, created “unmanageable risks” and set timetables back by a year or more.

The proposed rule change seeks to create clarity about what is involved in the R1 registration processes and what can be asked of the developers of new renewable and storage projects.

Many developers say they have felt ambushed by some of the processes, which in some cases have caused lengthy delays between the finish of construction and actual production.

In some cases it required them to add new expensive equipment, such as harmonic filters (particularly on some new battery storage projects) without knowing exactly why.

The proposed rule change seeks to throw the issue back into the court of the networks – who are responsible for grid security – to see if they can find a cheaper solution to the changing grid dynamics. It may mean that the onus falls back on new projects, but at least there will be more clarity.

The rule change to be lodged with the Australian Energy Market Commission is the first instalment of a suite of broader changes to the connection roadmap that are expected to be unveiled jointly by the Clean Energy Council and AEMO late next week.

CEC chief executive Kane Thornton says the proposal will give clarity to a process that historically has created serious delays for renewable investors and developers, and lead to less delays and lower costs.

“Every Australian has a stake in getting this right and helping bring clean, affordable new power generation to the grid efficiently,” Thornton said in a statement.

“Currently, some generators have faced open-ended delays to connection and unmanageable risks, creating a culture of uncertainty for renewable investors.

“If this adds to cost, if this causes delays, if this discourages investment, then it is Australian homes and businesses that ultimately will suffer when it comes time to pay their power bills.”

Peter Cowling, the head of Australia for developer Mint Renewables, and a former head of the local branch of wind manufacturing giant Vestas, says the connection process has been crying out for reform.

“These proposed changes are a response to that, arising from a long collaborative process involving hundreds of people from right across the industry.

“They are exciting because they demonstrate what we can do when we work together with a common goal. We will need to do a lot more problem-solving like this to achieve a rapid and just transition.”

Christiaan Zuur, the policy director of market, grid and investment at the CEC, says the focus of the working group has been addressing issues in the registration stages of the connection process, which has been the biggest hurdle for some projects and the cause of the greatest delays.

“Our overall aim is to make the connections process for new utility-scale renewable generation and storage work better for everyone involved,” Zuur said.

“It’s been a real eye-opener in terms of demonstrating a different way to make change in the National Electricity Market. Goodwill from AEMO, networks and industry has allowed us to work as equals and find common sense solutions to previously intractable problems.”