Weighing investment risk for energy infrastructure construction: Solar outshines nuclear power plants

Investment risk for energy infrastructure construction is highest for nuclear power plants, lowest for solar

The average energy project costs 40% more than expected for construction and takes almost two years longer than planned, finds a new global study. One key insight: The investment risk is highest for nuclear power plant construction and lowest for solar. The researchers analyzed data from 662 energy projects built between 1936 and 2024 in 83 countries, totaling $1.358 trillion in investment.

Weighing investment risk for energy infrastructure construction: Solar outshines nuclear power plants

Between now and 2050, the International Energy Agency projects that more than $100 trillion will be spent on building net-zero energy infrastructure globally. Yet every single one of these projects runs the risk of higher-than-expected construction costs or time delays. Newer technologies introduced in the past decade, such as hydrogen or geothermal energy, are even more difficult to evaluate as government agencies, energy developers, utilities,…

Solar a safer financial proposition than nuclear or hydrogen

A new study from the Boston University Institute for Global Sustainability has highlighted the financial risks associated with building energy systems, having found that more than 60% of energy infrastructure projects run over budget  This study draws on a dataset covering 662 projects across 83 countries from 1936 to 2024, representing over $1.35 trillion in investment and more than 400 gigawatts of capacity. They found that over 60% of those p…

Comparative Investment Risks in Energy Infrastructure: Nuclear Power Plants

In an era where climate change is one of the most pressing global challenges, achieving net-zero carbon emissions has become a goal that many nations aspire to reach by 2050. The International Energy Agency (IEA) has estimated that over $100 trillion will be required to build the infrastructure essential for this ambitious target. Although this investment promises a path to cleaner energy, the actualization of such projects is fraught with risks…