Time to Put the Pedal to the Metal. Clean Energy Council Q2 2025 Report.
The Clean Energy Council’s (CEC) Q2 2025 Quarterly Investment Report (1) is blunt: momentum has slipped again at precisely the wrong time. Coal retirements are approaching, and the clean build is not a “nice to have” but a “must have.” The report calls for faster planning and productivity reforms to unlock a large pipeline and restore investor confidence. For investors, the near-term picture is frustrating, but the medium-term opportunity remains compelling.
Main findings
As per the report, only four new generation projects reached financial commitment in Q2, totalling 615 MW and $520m. Year-to-date, 1.17 GW has been committed, about one-third of the 6–7 GW annual run-rate required to stay on track for the 82 per cent 2030 target. No onshore wind farm has reached financial close in 2025 to date.
Storage also slowed. As per the report, three projects reached financial close in Q2, totalling 334 MW / 1,168 MWh — the weakest quarter since Q3 2023 — though the trend of 1,000+ MWh of new commitments per quarter has continued for nine consecutive quarters. The pipeline is large: 83 generation projects representing 13.1 GW and 73 storage projects representing 12.8 GW / 33.3 GWh.
The CEC is explicit about the blockers: delayed transmission, lengthy and unpredictable environmental and planning assessments, workforce bottlenecks, and uncertainty about long-term revenue. The May Federal Election also caused investors to pause on large, multi-decade decisions.
Why this matters for investors
Capital is not the constraint. Policy productivity is. The CEC’s message is that assessments must become faster, clearer and more predictable to unlock projects. The risk for investors is not demand for clean power — it is time and cost slippage eroding returns while approvals drag. In practical terms, that means:
Transmission milestones are now investment catalysts.
Planning certainty is as valuable as capex savings.
Technology mix matters — prolonged wind delays risk higher system costs and price volatility at peak times.
The productivity challenge — and a link back to Dr Henry
This push mirrors Dr Ken Henry’s National Press Club message: (2) environmental law reform is now a productivity imperative. We covered his remarks — and why faster, clearer approvals are essential to unlock investment — in our piece on his address. You can read our coverage here.
The alignment is notable. The CEC is advocating planning reform, streamlined and consistent assessments, and coordinated transmission so projects move from paper to power far more quickly. The investment signal improves when timing risk falls.
What can happen next — the productivity roundtable
Attention now turns to the coming economic productivity roundtable which will be focused on productivity and reforms. The CEC frames this as an opportunity to “put the pedal to the metal” on clearing bottlenecks. Specifically, it has highlighted priorities that would materially de-risk the pipeline for investors:
Accelerate critical transmission to connect Renewable Energy Zones.
Speed up and standardise environmental and planning assessments.
Advance Environment Protection and Biodiversity Conservation (EPBC) reforms with national environmental standards, regional planning, an independent EPA, and a practical transition path so projects are not stranded between regimes.
The stakes are very clear. A credible productivity package would lower approval timelines, reduce uncertainty premia in bids, and bring stalled projects to financial close. Conversely, a light outcome risks extending the current lull even as coal exit restrictions tighten the supply-demand balance.
Investor takeaways
Short term, expect lumpy commitments while approvals and transmission catch up. Medium term, the combination of coal retirements, firming needs and policy alignment still supports substantial deployment of utility-scale solar and storage, with wind needing targeted fixes to re-enter the build at pace. Investors positioned in credible, grid-ready projects — especially hybrid solar-plus-storage with clear connection paths — should be well placed when bottlenecks ease.
The Bottom Line
The Q2 report is a warning shot on productivity and should no doubt be on the minds of attendees to the Economic Reform Round table. As per the report, investment levels are below what is needed, but the pipeline is there, and capital stands ready. The near-term unlock is policy execution: faster, clearer assessments and transmission delivery. If the coming roundtable lands meaningful reforms, the second half of 2025 can look very different to the first. If not, delays will compound — and so will the cost of catching up.
References
Clean Energy Council. “Quarterly investment report: Large-scale renewable generation and storage.” Q2 2025 https://cleanenergycouncil.org.au/news-resources/quarterly-investment-report-q2-2025
EnviroInvest. “Why Environmental Law Reform Is Needed Now” — coverage of Dr Ken Henry’s National Press Club address, 17 July 2025. https://www.enviroinvest.com.au/blog/why-environmental-law-reform-is-needed-now
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