Grid constraints, curtailment and congestion have become the most significant and fastest-growing operational risk for Australia's renewable energy sector, according to a joint survey by the country's Clean Energy Council and insurance brokerage Lockton.

The Renewable Energy Risk & Insurance Index, based on responses from more than 140 developers, investors, operators and financiers in the renewable energy sector, found that 85% of respondents identified grid constraints as a growing concern, 23 percentage points higher than any other risk category. Another 69% said these issues are poorly addressed by current contractual, regulatory and insurance frameworks.

Grid connection and registration was rated difficult or very difficult by 68% of respondents, with 56% saying the process has become harder over the past three years. Developers were most likely to rate it difficult at 75%, compared with 50% for contractors, equipment manufacturers and operations respondents.

Planning and environmental approvals ranked as the single hardest stage of project development. Four in five respondents rated state-based development and environmental approvals as difficult or very difficult, the highest rating of eight project stages surveyed, while 71% said these approvals have become harder to obtain. At the federal level, 66% rated Commonwealth environmental approvals as difficult or very difficult.

Community engagement has also become a larger barrier, with 73% saying community opposition or social license risk has changed how they engage with communities. More than half rated community engagement as difficult and 66% said it has become harder over three years.

On the investment side, 69% cited market risks such as volatility and revenue loss as a leading non-damage concern, alongside policy settings and revenue certainty.