Less than half of the projects selected in the early rounds of the Australian government's Capacity Investment Scheme (CIS) are likely to reach completion, according to warnings from energy experts and industry investors.
The scheme, a cornerstone of the Labor government's clean energy strategy, is facing a severe viability crisis as deteriorating market conditions raise the prospect that more than 50% of the awarded projects will never be built.
Industry stakeholders are now pushing for urgent changes to the subsidy program's structure.
Experts argue that without a policy reset, the CIS risks becoming a repository of "zombie projects" that consume political capital and market attention without delivering actual capacity.
The call for reform comes as investors signal growing reluctance to commit capital to projects that lack clear commercial pathways under current market dynamics.
The situation in Australia mirrors broader global headwinds facing clean energy infrastructure.