Rising Costs and Social Licence Challenges

The Australian Energy Market Operator (AEMO) published its Draft 2025 Electricity Network Options Report highlighting a 25% to 55% increase in real costs for overhead transmission line projects compared to 2024 estimates. This is attributed to supply chain constraints, project complexity, contracting challenges, and social licence considerations, including the need to avoid environmentally or culturally sensitive areas. These factors are shaping transmission planning and cost forecasting globally.