The financing of industrial investments

New delivery and financing structures for infrastructure that enable co-investments with domestic investors taking the lead can be the solution. Overcoming this challenge will increase the long-term value created by our society and secure that our citizens also capture the fruits of their work.

Reducing emissions is a business opportunity. There are enough technologies available to reduce emission 50% by 2030 at a low cost. To capitalize on it you need to productize the emission reduction as part of the offering and the investment.

Of late, the proverbial wave of renewable energy that has swept over parts of the world has been coupled with the clearer understanding that in order to fully utilize their planet-saving potential, the issue of intermittency needs to be addressed and solved; Intermittency, in energy industry jargon, meaning the fact that the sun does not always shine, the wind does not always blow, and actual non-proverbial waves do not always sweep the oceans.

Megaprojects are large-scale infrastructure projects with investment budgets exceeding USD 1 billion.

Capacity Markets (CMs) is an increasingly popular policy measure being considered in European electricity markets with the aim of securing electricity supply at the lowest cost to consumers as well as supporting new investment into power generation assets. In the UK, it is already up and running and constitutes a key part of their Electricity Market Reform program. Similar auction-based Capacity Markets are being formed in Ireland, France, and Italy.

Industrial and infrastructure investments are constantly becoming more complicated and sizable. At the same time there are alarmingly high cost overruns, delays and underperformance.

Uncertainty in large projects is not only a risk for negative consequences but also a source for innovation and improving efficiency.

Large infrastructure investments in Europe are in average two years delayed and record a 60% cost overrun.