As reported by BloombergNEF (BNEF), it was a record year for low-carbon energy transition investments, totaling $1.1 trillion in 2022 – and for the first time, matching fossil fuel investments.
It is worth noting that this includes about 561 billion of energy demand investments – which is primarily electrified transport investments. Nonetheless, this is a watershed moment for energy transition investments, and a trend that is unlikely to reverse.
However, as we’ve seen in recent reports as well by Reuters and WSJ, some projects are running up against execution challenges. Supply chain disruptions, quality issues, and regulatory delays are some of the execution difficulties added on top of the cost inflation seen over the last year.
Ambitions are big – take for example the European bet that the North Sea’s terrible weather and relatively shallow depths can usher in 260GW of added capacity by 2050 – enough to power 200 million additional homes! This is equivalent to adding 24,000 of the largest wind turbines in the world today.
This is going to take a lot of project coordination and execution capabilities ahead – At the end of the day, you make or break it in the execution!
Vik Bulletin 