Grid concerns threaten wind and solar project pipeline

Renewable energy investors including Macquarie and BlackRock have banded together to push for changes in the way transmission losses on the country’s choked power grid are allocated after seeing about $1 billion wiped off the value of wind and solar assets across the sector in the past 2-3 years.

The Australian Financial Review is reporting the 20-strong group, which includes AGL Energy’s PARF renewable fund with QIC, is urging immediate modifications in the system to avoid derailing about 10 gigawatts of wind and solar generation projects that they have in the development pipeline.

The concerted action comes as the group instigator, London-listed major John Laing Group, in August took a £66 million ($121 million) write-down on three Australian renewable energy projects as unprecedented congestion on the power grid eroded plant profitability. It also froze future investment in the sector.

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