July 2025

Power plays and water works

Wind turbines, Australia

image: Alex Eckerman, Unsplash

Momentum in Australia’s energy and water infrastructure pipeline is being tested. What are the biggest obstacles slowing progress? Consult Australia’s advocacy team turns on the spotlight.

As governments at all levels step up their response to climate change, the energy transition, resilience and growth pressures, the pipeline of utilities infrastructure projects continues to grow.

 

Infrastructure Australia estimates the utilities infrastructure pipeline will hit $16 billion by 2028, the bulk of that renewable energy and transmission projects. More than 180 water projects are active under the National Water Grid program.

 

Meanwhile energy and water infrastructure dominates investor interest, with Infrastructure Partnerships Australia tracking 264 energy projects representing A$604 billion in capital expenditure.

But the pace of progress is under pressure. Cost blowouts and delays have impacted several key projects, while shifting government priorities have seen others shelved or deferred.

 

Several key barriers stand in our way, including supply chain challenges, labour constraints and the regulatory and planning processes required to obtain approvals.

 

“The sheer size of new renewable energy assets poses unique logistical challenges. Think enormous wind turbine blades that cannot be transported on regional roads or giant transformers that exceed bridge load limits,” says Consult Australia’s National Policy Manager, Kristine Banks.

 

Procurement is another friction point. “Many clients commissioning energy infrastructure are new to the market. Consult Australia is working to ensure these clients adopt ‘model client’ practices and don’t fall into the procurement pitfalls we’ve seen elsewhere, such as overly complex contracts or risk allocation issues that have hampered transport infrastructure delivery.”

 

Utilities infrastructure investment is a state-by-state story, so we asked some of Consult Australia’s advocacy experts what projects and policy developments they are seeing on the ground.

 

Preferred Australian asset types for investment

New South Wales

Billions are flowing into NSW five Renewable Energy Zones, while Sydney Water will invest $34 billion over the next decade. So, it’s no surprise that energy and water are among the four top priorities for Consult Australia’s NSW Committee, alongside transport and building, says Alison Kirk, Consult Australia’s NSW and ACT Manager.

 

“Australia’s water and energy industries are both tackling macro-economic challenges, like cost escalation, labour shortages and supply chain bottlenecks, while the ongoing impacts of climate extremes makes delivering infrastructure tougher.”

 

A recent sold-out lunch with WaterNSW CEO Andrew George revealed a future-focused vision grounded in sustainability, digitalisation and community engagement, Alison notes. In October, members will meet Hannah McCaughey, new CEO of EnergyCo, continuing Consult Australia’s strong program of engagement with key sector leaders.



Northern Territory

“Investment in energy projects is a key economic driver for the Northern Territory economy,” notes Consult Australia’s SA, NT & Defence Manager, Matthew Williams.

 

Consult Australia holds biannual meetings with Power and Water Corporation to discuss procurement, pipeline, productivity and more. Consult Australia and Engineers Australia recently hosted a NT energy forum with special presentations from the NT Department of Logistics and Infrastructure and the Australian Energy Producers Association. Members learned market insight on energy infrastructure projects including regional logistics hubs and roads programs required to support new private investment in the Beetaloo Basin and Middle Arm Precinct.

 

Territory Energy Link is a great example of the enabling infrastructure required to support energy projects in the Top End, Matt notes. “The Territory Energy Link corridor will run for around 670 kilometres to the proposed Middle Arm Precinct in Darwin. It will be approximately 130 metres wide and support buried services including gas, water, optical fibre and hydrogen gas.

 

Then there’s the Adelaide River Off-Stream Water Storage (AROWS) – the largest water project in the Territory’s history. “There are huge opportunities ahead for our members.”



South Australia

In South Australia, Consult Australia recently convened an industry forum with senior water leaders, spotlighting SA Water’s record $3.3 billion capital program and climate-related risks for water and coastal infrastructure.

 

“An energy industry forum with the CEO of South Australia’s Department for Energy and Mining is planned for later this year where carbon capture storage and the proposed Northern Water infrastructure project – the largest water infrastructure project in regional Australia will be key areas of discussion,” Matt Williams notes.



Queensland

In Queensland, a change of government has led to a change in focus. The Crisafulli Government has announced the development of a five-year Energy Roadmap and passed new renewable laws impacting current applications awaiting decision and future planning.

 

While the forward plan is confirmed, other large-scale projects continue to find funding. In April, for instance, the state government agreed to invest $50 million into a proposed pumped hydro project at Mt Rawdon, which could enable nearly 6GW of additional renewable generation capacity.

 

“Consult Australia will closely track developments as policy settings evolve to address Queensland’s growing infrastructure demands and energy transition goals,” says Laura Macdonald, Consult Australia’s QLD Manager.



Victoria

As the renewable energy transition continues at pace in Victoria, the VicGrid Stage 2 Reform Bill, intended to centralise planning and streamline deployment, is working its way through Parliament. This comes after Consult Australia hosted Danny Benjamin, Executive Director of VicGrid earlier this year.

 

Consult Australia enjoys a collaborative and constructive relationship with Victoria’s Department of Energy, Environment and Climate Action (DEECA), says Mark Rogers, Consult Australia’s Manager for Victoria and Tasmania. With members not only engaging in high-level discussions at a boardroom lunch DEECA Secretary John Bradley but also playing an active role in shaping DEECA’s new Climate Change Tool, participating in a pre-release consultation session.

 

“Our ongoing collaboration exemplifies the power of partnership in shaping practical, forward-thinking solutions to the challenges of climate change and infrastructure planning,” Mark notes.



Western Australia

Consult Australia continues its productive involvement as a key stakeholder on WaterCorp's Urban Development Advisory Committee. This committee brings together industry and government to collaborate on policy and share insights.

 

Other recent targeted engagement with WaterCorp was focused on member concerns about professional indemnity insurance requirements, the use of Design & Construct contracts and current market conditions.

 

“The engagement is constructive and WaterCorp is receptive to the commercial challenges facing consulting businesses,” says Emma Thunder, Consult Australia’s WA Manager.

 

“We also continue to seek engagement opportunities with Western Power on model procurement approaches, panel contracts and alliance models. In this context, our strategic partnerships with other industry stakeholders are useful, particularly our strong relationship with the construction industry through the Civil Contractors Federation.”

 

Kristine Banks emphasises that Consult Australia is deeply engaged with governments and stakeholders nationwide as Australia’s energy and water sectors evolve.

 

“We’re ensuring that our members have the insights, relationships and opportunities to help shape this transformation and to deliver smarter, more resilient and sustainable infrastructure for Australia,” Kristine concludes.

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