Ensure project bankability by mitigating offtaker risk and ensuring diverse and certain revenues streams
- Power and Grids
- Financials
- Companies
One of the biggest barriers to renewables deployment, especially in developed economies, is bottlenecks in securing permitting and grid access. Together with land-use and zoning restrictions, and in some cases, land ownership regulations, these permitting bottlenecks can cause significant project delays. Speeding up project deployment timelines is therefore pivotal to decarbonizing the power system.
One solution is for policymakers and regulators to implement measures to streamline processes for permitting and grid connection. In doing so, governments must provide enough resources to the bodies responsible for overseeing permitting and connection requests.
Policymakers should also exercise caution as not to implement overly strict land-use regulations. Fast-tracking permits for projects on land deemed likely to be suitable can also shorten permitting timelines, as can making relevant information – like geospatial data on local biodiversity – public. Establishing milestones that projects must hit to remain in the queue can reduce time spent on speculative or unlikely projects, thereby focusing assessors’ efforts on permitting and connecting the most viable sites.
Beyond the more common permitting and connection bottlenecks, deployment timelines are sometimes hindered by supply-chain and labor constraints. Developers must ensure that the supply chains can deliver the necessary volumes of technology installations and respond to shocks as needed.