Australia’s clean energy transition is accelerating. So are the risks around delivery.
Developed in partnership by Lockton and the Clean Energy Council (opens a new window), the inaugural Renewable Energy Risk and Insurance Index provides a new benchmark of the commercial, operational and emerging risks shaping Australia’s clean energy sector.
The Index received 213 responses from across the sector. Of these, 146 met the inclusion criteria and formed the basis for the analysis, including 102 respondents who completed the full questionnaire. The findings capture perspectives from developers, operators, engineers, contractors, financiers and other stakeholders working across Australia’s renewable energy landscape.
Five risks shaping project delivery
The findings reveal an industry confident in the long-term opportunity ahead, but navigating an increasingly interconnected risk environment.
1. Grid connection and curtailment
85% of respondents identified grid constraints, congestion and curtailment as a growing operational risk, while 69% said these risks were poorly addressed by existing frameworks.
2. Planning and approval barriers
81% rated state-based development and environmental approvals as difficult or very difficult, with 71% saying they have become harder over the past three years.
3. Workforce capability
Labour shortages ranked among the top workforce risks for 77% of respondents by likelihood and 76% by potential severity, highlighting implications that extend beyond recruitment into project delivery, safety and operational resilience.
4. Social licence and community expectations
73% said community opposition or social licence risk has changed the way they engage with communities, reinforcing the increasingly important role of trust and stakeholder engagement in project delivery.
5. Investment and revenue certainty
Market and revenue volatility emerged as a leading non-damage concern, cited by 69% of respondents, reflecting growing focus on project economics, returns and long-term investment confidence.
Valid response bases vary by question and are detailed throughout the report.
Risk is becoming increasingly interconnected
Many of the challenges identified through the Index cannot be addressed by insurance alone.
Grid constraints affect project delivery. Workforce shortages influence capability. Community expectations can reshape development pathways. Market uncertainty affects investment decisions.
For organisations developing, financing and operating clean energy assets, managing this environment requires a broader view of risk combining insurance with strong project governance, workforce planning, stakeholder engagement and informed decision-making across the asset lifecycle.
Turning insight into action
This Renewable Energy Risk and Insurance Index establishes a baseline for Australia’s clean energy sector.
Future editions will help track which pressures are easing, which are intensifying and where new risks are emerging - giving industry, investors and insurers a shared evidence base to support better conversations and better decisions.
What these findings mean for the sector
The findings highlight that many of the sector’s most significant challenges require a coordinated response. While insurance remains an important tool, managing risk in today’s environment also depends on strong project governance, workforce planning, stakeholder engagement and informed decision-making across the asset lifecycle.
Our Power & Energy specialists support developers, owners, operators, investors and financiers across renewable generation, battery storage, transmission and major energy infrastructure. Speak with our team to discuss what these findings could mean for your organisation and how we can support your business in managing risk across the project and asset lifecycle.
Explore our full report here (opens a new window).
The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content in this publication.
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