Gridlock in the Sun: Solar Farms Stranded as Infrastructure Lags Behind

Australia’s renewable energy ambitions are facing a sobering reality as solar farms across key states are being forced to reduce output or shut off entirely—despite having ample generation capacity. The cause? A growing gap between renewable project rollouts and the country’s outdated and delayed transmission infrastructure.

The Australian Energy Market Operator (AEMO) recently warned that, by 2027, many large-scale solar farms in Victoria and South Australia could be forced to waste up to 65% of their energy due to a lack of grid capacity. Even today, solar curtailment—where energy cannot be sent to the grid—is averaging 4.5%, and that number is climbing. Projects that were expected to power thousands of homes are now producing energy that simply goes unused.

At the core of the problem are major delays and cost overruns in national transmission projects like VNI West, EnergyConnect, and the Western Renewables Link. Originally meant to enhance connectivity between regions, these projects have been repeatedly postponed, with VNI West now unlikely to be completed before 2030—two years later than scheduled. These setbacks are more than bureaucratic snags; they are now actively undercutting Australia’s energy security and economic stability.

The price tag for this inefficiency is rising. Transmission infrastructure costs have ballooned, with overhead line construction up 55% and substation costs up 35%, burdening taxpayers and placing additional pressure on electricity prices—already a key concern for households and businesses.

AEMO has flagged that over 20 gigawatts (GW) of renewable energy currently in the connection pipeline and 300 GW in proposed developments are at risk of delay or downsizing due to grid congestion. Industry players, including software firm Neara, have called for smarter solutions that make better use of existing infrastructure instead of relying solely on large-scale builds that may not arrive in time.

The Clean Energy Council stressed that solar farms are especially vulnerable, as they generate most of their output during peak sunlight hours—times when grid access is often maxed out. Without urgent investment in transmission and modernization, Australia’s target of 82% renewable electricity by 2030 may slip out of reach.

In short, Australia doesn’t have a solar problem—it has a wires problem. If the country wants to maintain investor confidence, lower household energy bills, and meet its climate commitments, the government must focus less on projections and more on practical delivery.