Offshore wind projects have less delays and cost overruns than other large power and utility projects, according to a new report from EY.
The report – ‘Spotlight on Power and Utility Megaproject: Formulas for Success’ – analysed 100 large power generation, transmission and water projects across all asset life-cycle stages.
It found on average such projects run 35% over budget and behind schedule by two years, while for offshore wind the average was about 15% over budget and delays of less than six months.
EY said 64% of all the projects analysed experienced delays and 57% were over budget.
The highest reported average delays occurred in North America – just under three years – while South America reported the highest average cost overruns at nearly 60%, the report said.
Almost three quarters of hydropower, water, coal and nuclear projects were over budget by 49% on average, with hydropower and nuclear projects typically had the greatest cost overruns at $4.6bn and $4bn, respectively, EY said.
EY global power & utilities, capital & infrastructure leader Safia Limousin said: “Cost overruns and late delivery are symptoms of greater underlying problems in the power and utilities sector.
“Companies must address these issues head-on in the next wave of infrastructure investment or risk sacrificing the full economic and social benefits megaprojects offer.
“That means leveraging leading practices and innovations to enhance value.”
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EY: offshore suffers less delays
Report says sector has shorter overruns than other large power projects
By EBS