How to deliver large-scale grid infrastructure projects

<p class="p1"><span class="s1">New report from the Utilities for Net Zero Alliance addresses key challenges facing large-scale infrastructure projects and offers stakeholders recommendations for ensuring such projects are delivered within time and budget. </span></p><p><span style="font-weight: 400;">An unprecedented number of large-scale infrastructure projects must be developed and delivered in the coming decades to facilitate a large global pipeline of power generation projects, according to a new report from the Utilities for Net Zero Alliance (UNEZA). </span>Lagging infrastructure in power grids is largely considered a key barrier to the energy transition, with networks not expanding or modernizing quickly enough to integrate the scale of renewable energy deployments.</p>
<p>UNEZA's report, <span style="font-weight: 400;"><a href="https://www.utilitiesfornetzero.org/-/media/UNEZA/Files/Publications/UNEZA_PAR_Delivering_grid_infrastructure_2025.pdf" rel="noopener" target="_blank">Delivering large-scale grid infrastructure projects</a>, says that </span><span style="font-weight: 400;">while large-scale grid infrastructure projects are complex undertakings that regularly face cost overruns, delays and scope changes, it is possible to deliver such projects on time and within budget.</span></p>
<p><span style="font-weight: 400;">The alliances report offers key learnings from existing large-scale grid infrastructure projects covering planning, financing, supply chains and skills gaps that can be applied to future projects.</span></p>
<p>In a discussion of planning constraints, <span style="font-weight: 400;">UNEZA says large-scale grid infrastructure projects should be part of a broader, forward-looking, holistic and coordinated national or regional plan. </span><span style="font-weight: 400;">The alliance adds that stakeholder engagement should start early and continue at regular frequencies, and also says permitting or approval challenges should be identified early, before significant resources are committed.</span></p>
<p><span style="font-weight: 400;">The report’s finance recommendations include reducing the cost of capital to secure financing, through options including public-private partnerships, green bonds and innovative finance structures. It also says long-term plans should be the basis of feasibility studies and business case proposals to secure investor support.</span></p>
<p><span style="font-weight: 400;">UNEZA says supply chains face challenges relating to the availability of critical materials and manufacturing capacity when catering to rapidly growing demand. </span><span style="font-weight: 400;">The alliance suggests that strengthening traditional customer-supplier relationships through strategic partnerships can help mitigate supply chain risks, as well as exploring new business models and approaches, and leveraging standards to promote safety and competitiveness.</span></p>
<p><span style="font-weight: 400;">The report also stresses that skills shortages are one of the most complex and enduring power sector disruptors and says it is becoming more difficult to fill positions for skilled workers. </span><span style="font-weight: 400;">To combat these challenges, UNEZA recommends promoting cross-industry transitions, reskilling and upskilling initiatives and ensuring adequate social infrastructure around projects, such as accommodation and transport links, to find and retain staff. It also suggests that developers work with educators to ensure graduates are available with the skills required to take entry-level roles in infrastructure projects.</span></p>
<p><span style="font-weight: 400;">“Large-scale grid infrastructure projects are complex and take time to develop,” the report summarizes. “The right permitting and regulatory approvals processes, as well as access to adequate project financing, global supply chains, and skilled persons – across value chains and from conception to construction, operation and decommissioning – can help ensure on-time and within-budget delivery.”</span></p>
<p><span style="font-weight: 400;">UNEZA's report also features several case studies of large infrastructure projects that have been delivered efficiently, including the London Power Tunnels project, India’s Green Energy Corridor, and the Itaipú Dam, located on the border between Brazil and Paraguay.</span></p>
<p>The International Renewable Energy Agency (IRENA) has estimated around $670 billion of investment globally is required annually between 2025 and 2030 to put towards strengthening electricity grids.</p>