Global Energy Investments
Global energy investment is at record levels; by contrast, project delivery performance continues to struggle. Investment in energy projects in 2026 is expected to be about $3.4 trillion; importantly, of this, about $2.2 trillion is allocated to renewables, grids, storage, nuclear, energy efficiency and electrification infrastructure. In addition, electricity-related spending accounts for approximately 60% of total global energy investments.
Significant Cost Overruns
The scale of investment is significant; nevertheless, in a recent global study of energy infrastructure projects, the findings revealed that over 60% of projects are experiencing significant cost overruns. Consequently, projects are increasingly complex and costing 40% more than expected and, as a result, are taking around two years longer than planned on average. Ultimately, globally, we are experiencing these top seven key issues:
- Record levels of investment
- Persistent cost overruns
- Demand for energy security
- Increasing grid expansion
- Rising project complexity
- Accelerating electrification
- Delayed project delivery
Delivery Certainty
Furthermore, nuclear and emerging technology investments experienced the highest construction risks; however, solar and transmission consistently performed better on cost and schedule certainty. As energy transition investments accelerate, are organisations paying enough attention to delivery certainty and cost versus capital investment commitments? Moreover, on major programmes, we see value often lost at the approval phase due to these top 5 risks:
- Unchallenged assumptions
- Inadequate risk visibility
- Scope creep and evolution
- Weak forecasting discipline
- Delayed decision-making
Root Causes
In the past, financing energy transition was often a financing challenge; increasingly, today, delivery appears to be the challenge and cost inflation is not always the root cause. Cost assurance and schedule issues are often symptoms of weak forecasting, governance, scope control and risk visibility.
Future Investments
What do you believe is the biggest threat to delivering energy infrastructure transition? Is it delivery, cost uncertainty, programme complexity, supply chain constraints, or governance? If investing $1 billion today, where would your leaders and Capex programmes have the greatest confidence in delivery certainty and why?
- Solar
- Grid infrastructure
- Nuclear
- Hydrogen
- Carbon capture
References
- Boston University Energy Infrastructure Study
- International Energy Agency World Energy Investment 2026
- National Infrastructure Service Transformation Authority Major Projects Annual Report 2025–26
- International Energy Agency Energy Investment Trends
- Her Majesty’s Treasury UK Mega Projects Review
- Institution of Civil Engineers Green Paper on Major Infrastructure Delivery
- International Energy Agency Grid Investment Forecast
- Building Cost Information Service (BCIS) – Infrastructure Forecast 2026
- Sustainability Global Energy Infrastructure Delivery Study
- UK Government Energy Security & Infrastructure Investment Publications
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