Energy Project Management

Energy-Related Climate Action Goals 🌎 Energy is one of the most critical levers for climate action—and one where companies can make measurable progress through structured steps. A practical framework by Schneider Electric outlines how organizations can evolve their energy strategy from compliance to leadership across three pillars: efficiency, decarbonization, and renewable energy. The starting point is regulatory alignment: conduct energy audits, ensure site-level consumption tracking, and report GHG emissions in line with established protocols. These are foundational steps to gain visibility and stay compliant. The next level involves more active management. Introduce submetering, set targeted reductions by site or process, upgrade outdated equipment, and disclose your performance through recognized platforms like CDP. Advanced organizations go further—using real-time energy data to optimize systems, committing to ISO 50001 or EP100 standards, and deploying on-site solutions like EV infrastructure, microgrids, or renewable heat. Efficiency becomes part of the value chain. Decarbonization begins with measurement. Track your full GHG footprint and set initial emissions reduction goals—whether absolute or intensity-based—to anchor your roadmap. Strengthen your decarbonization strategy by assessing Scope 3 emissions, setting long-term, science-aligned targets, and reporting emissions using both market- and location-based methods. Interim carbon neutrality goals may still rely on offsets. Leadership means setting net zero targets without offsets, aligning with the 1.5°C pathway through SBTi-approved targets for Scope 1, 2, and 3, and working closely with suppliers to decarbonize the full chain. Business models begin to shift around low-carbon value creation. On renewables, early actions include purchasing Energy Attribute Certificates (EACs) or using green tariffs to cover Scope 2 emissions. This provides a credible but indirect solution. More advanced steps include direct procurement through onsite or offsite sources, replacing Scope 1 offsets with clean technologies, and engaging your supply chain in renewable energy efforts. The goal: 100% renewable energy, achieved through real transformation—not accounting. Source: Schneider Electric #sustainability #sustainable #business #esg #climatechange #energy

The Silent Project Killers: Inadequate Resource Planning and Overloaded Teams A few years ago, I was leading a high-stakes project in the energy sector. We had all the right resources—on paper. A well-funded budget, top-tier consultants, and cutting-edge technology. But as we moved into execution, cracks started to show. 💡 The team was stretched too thin—brilliant minds, but not enough capacity to execute efficiently. 💡 Materials arrived late, disrupting workflows and causing delays. 💡 The budget was burning faster than expected, yet progress was slow. That was when I had my aha moment: resource management is not just about having enough—balancing capability and capacity.   ✅The WHAT – Do we have the right resources or just more resources? ✅The WHEN – Are resources available when needed, or are bottlenecks forming? ✅The HOW MUCH – Are we optimizing costs, or just throwing money at inefficiencies? Once we restructured our approach, aligning skills, time, and materials strategically, execution transformed. Productivity skyrocketed, and we delivered on time and under budget. Lesson learned? Having resources means nothing if they’re not deployed at the right time, with the right people, at the right cost. Plan with purpose. Balance capability and capacity. Deliver with precision. ♻️ Repost to help your network build their hidden advantage 🔔 Follow🎙️Fola F. Alabi for strategic insights and project value delivery #FolaElevates #strategicleadreship #resourcemanagement #projectmanagement #PMtoCsuite

𝗧𝗵𝗲 𝗙𝗮𝘀𝘁𝗲𝘀𝘁 𝗪𝗮𝘆 𝘁𝗼 𝗔𝗱𝗱𝗿𝗲𝘀𝘀 𝘁𝗵𝗲 𝗘𝗻𝗲𝗿𝗴𝘆 𝗖𝗿𝘂𝗻𝗰𝗵 𝗔𝗹𝗿𝗲𝗮𝗱𝘆 𝗘𝘅𝗶𝘀𝘁𝘀. 𝗪𝗲’𝗿𝗲 𝗝𝘂𝘀𝘁 𝗡𝗼𝘁 𝗨𝘀𝗶𝗻𝗴 𝗶𝘁 𝗦𝗺𝗮𝗿𝘁𝗹𝘆. Decades of electrification, digital acceleration, and rising demand have collided with grids that were not designed for today’s loads, from data centers to electrified fleets and AI-driven computing. That tension is driving the current energy crunch. 𝘉𝘶𝘵 𝘸𝘩𝘢𝘵 𝘪𝘧 𝘵𝘩𝘦 𝘧𝘢𝘴𝘵𝘦𝘴𝘵 𝘱𝘢𝘵𝘩 𝘪𝘴𝘯’𝘵 𝘮𝘰𝘳𝘦 𝘨𝘦𝘯𝘦𝘳𝘢𝘵𝘪𝘰𝘯, 𝘣𝘶𝘵 𝘣𝘦𝘵𝘵𝘦𝘳 𝘶𝘵𝘪𝘭𝘪𝘴𝘢𝘵𝘪𝘰𝘯 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘸𝘦 𝘢𝘭𝘳𝘦𝘢𝘥𝘺 𝘩𝘢𝘷𝘦? The leadership imperative is to unlock dormant capacity in the system. That requires a shift in strategy, not just capital. We are already seeing what this looks like in practice. Winthrop Center in Boston, for example, uses digital controls and intelligent energy management to consume 60% less electricity than a typical Boston office building. This reduces pressure on the grid without adding new supply. 𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝘁𝗵𝗿𝗲𝗲 𝗹𝗲𝘃𝗲𝗿𝘀’ 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝗲 𝘁𝗵𝗶𝗻𝗸𝗶𝗻𝗴 𝗮𝗯𝗼𝘂𝘁 𝗻𝗼𝘄: ◾ Optimise existing assets by modernising how current infrastructure is used to meet real demand rather than chasing new builds. ◾ Integrate flexibility and digital orchestration so smarter grids, AI forecasting, and demand response unlock capacity without new supply. ◾ Align stakeholders across sectors so utilities, technology operators, regulators, and corporates move from siloed goals to system-level value. 𝙏𝙝𝙞𝙨 𝙞𝙨 𝙣𝙤𝙩 𝙞𝙣𝙘𝙧𝙚𝙢𝙚𝙣𝙩𝙖𝙡 𝙞𝙢𝙥𝙧𝙤𝙫𝙚𝙢𝙚𝙣𝙩. 𝙄𝙩 𝙞𝙨 𝙖 𝙧𝙚𝙛𝙧𝙖𝙢𝙞𝙣𝙜 𝙤𝙛 𝙬𝙝𝙚𝙧𝙚 𝙫𝙖𝙡𝙪𝙚 𝙡𝙞𝙚𝙨 𝙞𝙣 𝙩𝙝𝙚 𝙚𝙣𝙚𝙧𝙜𝙮 𝙩𝙧𝙖𝙣𝙨𝙞𝙩𝙞𝙤𝙣. My perspective is reflected in a recent Forbes article on how leaders can turn today’s constraints into strategic advantages: 🔗 https://lnkd.in/e8G4ghB4 #Forbes #DigitalAcceleration #Sustainability

Energy Regulations: How to Turn Policy Complexity into Business Strategy! Ever seen a room full of executives go blank when a new energy policy or regulation is discussed? I have. Too many times. Energy regulations shape markets, but how we communicate them defines whether they’re a barrier or an opportunity. The problem isn’t the regulation – it’s how we translate it. 𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 𝗶𝘀 𝗶𝗻𝗲𝘃𝗶𝘁𝗮𝗯𝗹𝗲. 𝗖𝗼𝗻𝗳𝘂𝘀𝗶𝗼𝗻 𝗶𝘀𝗻’𝘁. Here’s how I break down regulations into business-ready insights: 𝟭. 𝗙𝗶𝗻𝗱 𝘁𝗵𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗔𝗻𝗴𝗹𝗲 A new power market regulation isn’t just a rulebook; it’s a roadmap for seizing market opportunities. Strip away the legal jargon and focus on what it means for operations, costs, or risk. 𝟮. 𝗨𝘀𝗲 𝗥𝗲𝗮𝗹-𝗪𝗼𝗿𝗹𝗱 𝗖𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻𝘀 Regulatory tariffs work like toll roads – you pay based on usage, but smarter routes (policy choices) can reduce costs. The right analogy can turn a technical regulation into a strategic conversation. 𝟯. 𝗗𝗲𝗰𝗼𝗱𝗲 𝗣𝗼𝗹𝗶𝗰𝘆 𝗜𝗻𝘁𝗲𝗻𝘁, 𝗡𝗼𝘁 𝗝𝘂𝘀𝘁 𝘁𝗵𝗲 𝗧𝗲𝘅𝘁 No regulation is random; it’s the result of industry trends, stakeholder debates, and economic shifts. A new renewable energy mandate isn’t just compliance – it signals where capital and policy are moving next. Smart businesses act before enforcement kicks in. 𝟰. 𝗧𝘂𝗿𝗻 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗶𝗻𝘁𝗼 𝗔𝗰𝘁𝗶𝗼𝗻 Regulations don’t exist in a vacuum. The key question is: What should leadership do differently today to stay ahead tomorrow? If that’s unclear, the translation isn’t complete. --> 𝗕𝗼𝗻𝘂𝘀: 𝗘𝗻𝗴𝗮𝗴𝗲 𝗕𝗲𝗳𝗼𝗿𝗲 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 𝗔𝗿𝗲 𝗙𝗶𝗻𝗮𝗹𝗶𝘇𝗲𝗱 Regulations aren’t just about compliance. They’re a conversation that businesses can shape. Engaging early, through industry associations, white papers, or direct consultations, ensures you’re influencing the future, not just reacting to it. The companies that stay ahead aren’t the ones reading regulations or policy documents after they’re published; they’re the ones shaping them in draft stages. Energy leaders who wait for regulatory clarity often find themselves playing catch-up. The real advantage lies in shaping strategy before compliance becomes a crisis. So, now tell me – what problem do you face in understanding energy regulations? Share your experience in the comments.

❗𝟵𝟱% 𝗼𝗳 𝘄𝗶𝗻𝗱 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀 𝗳𝗮𝗶𝗹* 𝗮𝗻𝗱 𝗜 𝗰𝗮𝗻 𝘁𝗲𝗹𝗹 𝘆𝗼𝘂 𝗶𝗻 𝗼𝗻𝗲 𝘄𝗼𝗿𝗱 𝘄𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗰𝗮𝘂𝘀𝗲 𝘆𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝘁𝗼 𝗳𝗮𝗶𝗹❗   "𝗨𝗻𝗸𝗻𝗼𝘄𝗻𝘀"   Overly simplistic? Perhaps. So let me double the complexity of my answer.   "𝗨𝗻𝗸𝗻𝗼𝘄𝗻 𝘂𝗻𝗸𝗻𝗼𝘄𝗻𝘀"   Unknown unknowns are things where we have neither knowledge of the occurrence, nor knowledge of the impact.   🦜Will a bird survey reveal a rare species of parakeet? If it does, what area will become unbuildable? 🧑🌾Will the farmer on the western boundary be supportive? If not, how much will it reduce the development envelope? 🍃Will atmospheric turbulence limit turbine choice? If it does, which classes will be unsuitable? 🪖Will the military restrict tip height? If it does, what will be the restriction? 🔋Will national energy policy shift? If it does, where will it shift to?   At Wind Pioneers we've worked on hundreds of potential sites across 50+ markets. Our clients are some of the best developers in the world and what we've learnt is that successful developers don't focus on known qualities of a site. 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿𝘀 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻 𝘄𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗸𝗶𝗹𝗹 𝘁𝗵𝗲𝗶𝗿 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁.   Here are our top tips for dealing with Unknown Unknowns: 𝟭) 𝗠𝗮𝗸𝗲 𝗮 𝗹𝗶𝘀𝘁 𝗼𝗳 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝘁𝗵𝗮𝘁 𝗺𝗶𝗴𝗵𝘁 𝗸𝗶𝗹𝗹 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗷𝗲𝗰𝘁. Rank them by likelihood and severity. Be your site's own worst critic. 𝟮) Have a workflow that enables you to easily 𝗿𝘂𝗻 𝗱𝗼𝘇𝗲𝗻𝘀 𝗮𝗻𝗱 𝗱𝗼𝘇𝗲𝗻𝘀 𝗼𝗳 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝘀𝗰𝗲𝗻𝗮𝗿𝗶𝗼𝘀. 𝟯) 𝗥𝘂𝗻 𝗱𝗼𝘇𝗲𝗻𝘀 𝗼𝗳 𝗪𝗵𝗮𝘁 𝗜𝗳 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼𝘀. For all severe or likely risks, perform a desktop what if scenario. Hunt for scenarios that make the project unviable, and then spend your time understanding and mitigating those risks. 𝟰) 𝗛𝗮𝘃𝗲 𝗕𝘂𝗳𝗳𝗲𝗿𝘀. Have 30-50% buffer on capacity at an early stage. If you want to build a 200MW project, have space for 300MW. When unknowns become known, they will eat away at your capacity. 𝟱) 𝗛𝗮𝘃𝗲 𝗖𝗼𝗻𝘁𝗶𝗻𝗴𝗲𝗻𝗰𝗶𝗲𝘀. Allow 10-20% erosion in NetCF as unknowns become known and constrain the project. 6) 𝗕𝗲𝘄𝗮𝗿𝗲 𝗼𝗳 𝗢𝗽𝘁𝗶𝗺𝗶𝘀𝗮𝘁𝗶𝗼𝗻. "Optimisation" is an exercise in "optimism" until you have complete knowledge of all constraints on a site. Be pragmatic and realistic, not blindly optimistic. 𝟳) 𝗚𝗮𝗺𝗯𝗹𝗲 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝘆. Wind farm development is hard. Really hard. Understand that every site is a bet with long odds. Plan your portfolio to be hedged and spread your risks over multiple projects with diverse risk factors.   Come talk to us if you'd like a sympathetic ear to the challenges of wind farm development.   *95% is a guestimate that depends on definitions. The exact number is not important - what's important is that most sites will never become wind farms so we need to consider risks not just opportunities…

You might hear a lot of excitement about the GW-scale announcements for offshore wind farms. Many players see it as a huge opportunity, but is it really that simple? It all comes down to one important aspect: Project financing. Securing the right support and managing risks effectively are key to success. Here’s a basic breakdown of what needs to be considered: A - Regulations & Permitting Risks: The complexity can vary significantly depending on the market. What most have experienced in the US, explains the risks are unpredictable when democracies take turn. B - Production Assumptions: From the initial resource assessment to long-term availability, energy yield estimation must be realistic. I have had long discussions with friends working in this area, and this is such a tricky and complex topic, for example, changes in turbine models or neighbouring wind projects can affect output. Accuracy here can make a significant difference, as even small errors in assumptions can impact long-term predictions. C - Construction Risks: How many days might be lost if things don’t go as planned? Bad weather or technical issues can lead to delays. Not a show stopper and no delays like nuclear projects here at least. 😉 D - Power (Market) Assumptions: Forecasting electricity prices is always a challenge. With more renewables entering the grid, predicting profitability requires considering a range of scenarios. The choice between CfD, PPAs, or merchant pricing strategies can also influence financial stability. E - Financing Risks: Geopolitical uncertainties and interest rate changes can influence financial outcomes. While these are often beyond control, planning for flexibility and building resilient financial models can mitigate some of the unpredictability. F - Operational Risks: Once built, maintaining reliable operations is essential. Even minor disruptions can affect profitability sometimes. Addressing this phase requires a lot of practical experience and proactive maintenance strategies to reduce downtime. Putting it all together: Now, if you want to put it into an equation, it might look something like this: Success = f (A + B + C + D + E + F) Where: A = Regulatory and Permitting Risks B = Production Assumptions C = Construction Risks D = Power (Market) Assumptions E = Financing Risks F = Operational Risks (often underestimated) The function f() here is a combination of experience, strategic planning, and risk management. Each element influences the others, and achieving project success requires balancing them thoughtfully. Success in offshore wind is about carefully understanding and managing the challenges that come with large-scale projects and as you see in the picture, there are always colourful possibilities, if done right. 😇 📌 💡 https://lnkd.in/e_T-UbP2 #OffshoreWind #ProjectFinance #RenewableEnergy

Most energy transition projects that fail to progress beyond capital allocation have one thing in common. They do not have clear stage gates, and both risk and commercial viability remain unclear to owners and lenders. In the Middle East and Europe, pressure is mounting to deliver renewables at scale with measurable short-term value. As part of my end‑of‑year energy transition playbook, I am sharing an example of a four‑step process that links technical, commercial and procurement decisions directly to investment milestones. Effective capital allocation depends on three actions: 🔹 Run system studies early, validating demand, power and costs before any FEED spend. 🔹Stress‑test dispatchability and tariffs, matching supply scenarios to contract structures and finance models to secure bankable offtake. 🔹Apply risk filters from day one, mapping mitigation measures and confirming business model fit before procurement commitments. This sequence connects capital with accountability. Time, cost and risk each have a checkpoint, reducing the chance of overruns and stalled decisions. Key takeaways: ▪️ Link early planning to bankability. ▪️Use clear gates for faster approvals and lower risk. ▪️Align commercial terms with operational readiness. How are you ensuring capital stays aligned with delivery risk in your energy transition strategy? #CapitalStrategy #EnergyTransition #ProjectFinance #RenewableEnergy #MiddleEast

In utility-scale solar, the projects that look “easy” on paper are the ones that usually hurt the most. Speed is everything — we can stand up gigawatts faster than any other power source — but only if the plan is bulletproof before the first pile hits the ground. Here’s what I’ve learned leading self-perform construction at Qcells: • A great plan doesn’t have to be complicated. It has to be clear, owned, and stress-tested. • The moment you skip the “what if this goes wrong” conversation is the moment your schedule and budget start bleeding. • Identifying and managing risk upfront isn’t optional — it’s what separates projects that deliver from the ones that bleed. But here’s the part a lot of leaders miss: GET OVER YOURSELF! If you and I have had the pleasure of planning anything together, coming from me that is likely surprising. I am fully aware I can be stubborn… from time to time. Ego has no place in the field. Align with your peers, point the entire team in the same direction, and move as one when it’s time to execute. If it not “your” plan, take ownership of it so that it becomes your plan. Misalignment at the leadership level turns a solid plan into chaos on the ground and many wasted efforts. We’ve scaled self-perform capability fast at Qcells because we obsess over the plan before we obsess over the pace — then we execute with ruthless alignment and zero tolerance for hidden risks. Execution without a solid plan is just expensive motion. A solid plan without alignment and risk management is just a nice PowerPoint. You need all three — and the discipline to protect them. What’s one practice that’s helped your team identify risks early or get everyone aligned before execution? Or both? Drop it in the comments — I read every one. Let’s keep building the renewable grid the right way — fast, safe, and together. #QcellsEPC #SolarConstruction #UtilityScaleSolar #ProjectExecution #RiskManagement #Leadership #Qcells #RenewableEnergy

𝗧𝗼𝗽 𝟭𝟬 𝗧𝗵𝗶𝗻𝗴𝘀 𝗬𝗼𝘂 𝗪𝗶𝗹𝗹 𝗡𝗼𝘁 𝗛𝗲𝗮𝗿 𝗙𝗿𝗼𝗺 𝗮𝗻 𝗘𝗻𝗲𝗿𝗴𝘆 𝗕𝗿𝗼𝗸𝗲𝗿 𝗬𝗼𝘂𝗿 𝗹𝗮𝗿𝗴𝗲𝘀𝘁 𝗲𝗻𝗲𝗿𝗴𝘆 𝗿𝗶𝘀𝗸𝘀 𝘀𝗶𝘁 𝗼𝘂𝘁𝘀𝗶𝗱𝗲 𝘁𝗵𝗲 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁. Most material exposure comes from basis risk, congestion, curtailment, fuel deliverability, and infrastructure constraints, not from headline price alone. 𝗣𝗿𝗶𝗰𝗲 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗲𝗾𝘂𝗮𝗹 𝗿𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁. A well-timed fixed price can still fail operationally if grid conditions, fuel access, or tariff structures shift. 𝗣𝗼𝘄𝗲𝗿 𝗮𝗻𝗱 𝗻𝗮𝘁𝘂𝗿𝗮𝗹 𝗴𝗮𝘀 𝗮𝗿𝗲 𝗻𝗼𝘄 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗹𝘆 𝗰𝗼𝘂𝗽𝗹𝗲𝗱. Electric reliability increasingly depends on gas deliverability. Treating them separately guarantees blind spots during stress events. 𝗨𝘁𝗶𝗹𝗶𝘁𝗶𝗲𝘀 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗲 𝗳𝗼𝗿 𝘀𝘆𝘀𝘁𝗲𝗺 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗻𝗼𝘁 𝘆𝗼𝘂𝗿 𝘂𝗽𝘁𝗶𝗺𝗲. Interconnection timelines, curtailment rules, and tariff design are governed by grid needs, not customer economics. 𝗬𝗼𝘂𝗿 𝘁𝗮𝗿𝗶𝗳𝗳 𝗰𝗵𝗼𝗶𝗰𝗲 𝗰𝗮𝗻 𝗺𝗮𝘁𝘁𝗲𝗿 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝘆𝗼𝘂𝗿 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿. Demand charges, ratchets, riders, and capacity cost allocation often outweigh commodity savings over the life of a facility. 𝗦𝗲𝗹𝗳-𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗼𝗳𝘁𝗲𝗻 𝗮𝗯𝗼𝘂𝘁 𝗿𝗲𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗻𝗼𝘁 𝗮𝗿𝗯𝗶𝘁𝗿𝗮𝗴𝗲. Onsite generation increasingly functions as capacity insurance and schedule certainty, not just cost savings. 𝗥𝗲𝗮𝗹-𝘁𝗶𝗺𝗲 𝘃𝗶𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀. Static forecasts and annual procurement cycles cannot manage a system that moves hourly and sometimes minute-to-minute. 𝗠𝗼𝘀𝘁 𝗼𝘂𝘁𝗮𝗴𝗲𝘀 𝗮𝗿𝗲 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗳𝗮𝗶𝗹𝘂𝗿𝗲𝘀, 𝗻𝗼𝘁 𝗳𝘂𝗲𝗹 𝗳𝗮𝗶𝗹𝘂𝗿𝗲𝘀. Decision rights, coordination gaps, and delayed escalation cause more damage than market volatility itself. 𝗦𝗽𝗲𝗲𝗱 𝘁𝗼 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗰𝗮𝗻 𝗰𝗿𝗲𝗮𝘁𝗲 𝗱𝗲𝗰𝗮𝗱𝗲-𝗹𝗼𝗻𝗴 𝗰𝗼𝗻𝘀𝗲𝗾𝘂𝗲𝗻𝗰𝗲𝘀. Rushing procurement without infrastructure and operating context often locks in costs and constraints that compound over time. 𝗬𝗼𝘂𝗿 𝗲𝗻𝗲𝗿𝗴𝘆 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘄𝗶𝗹𝗹 𝗼𝘂𝘁𝗹𝗶𝘃𝗲 𝘆𝗼𝘂𝗿 𝗯𝗿𝗼𝗸𝗲𝗿 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽. Contracts expire. Infrastructure, tariffs, interconnections, and operating models persist for decades. 𝗕𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: Brokers sell transactions. Energy leaders manage systems. The difference shows up only when conditions tighten, which is exactly when it matters most. * * * * * * * * * * 𝗗𝗼𝗻'𝘁 𝗷𝘂𝘀𝘁 𝘂𝘀𝗲 𝗯𝗲𝘁𝘁𝗲𝗿 𝗲𝗻𝗲𝗿𝗴𝘆, 𝘂𝘀𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 𝗯𝗲𝘁𝘁𝗲𝗿® 👉 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: 📩 https://lnkd.in/dGpq2-dC For energy insights, follow: #EnergyNinjaChronicles ⚡ #EnergyRisk #EnergyStrategy #GridReliability #LegendEnergyAdvisors

Risk is a huge component of any large energy project. Jigar Shah lays out an excellent 5-part framework worth keeping in mind. Jigar Shah, well known in project finance circles, is the former director of the DOE Loan Programs Office. More importantly, he has deep industry experience. For two decades he’s helped commercialize capital-intensive technologies and build financial structures that get projects built. His work spans solar and storage, advanced nuclear, carbon capture, advanced materials, hydrogen, and more. It turns out Jigar Shah was on the Climate CEOs podcast with Chris Wedding ⚡back in May, but I didn’t listen to it until just this weekend. It was a fantastic discussion. In this episode, Jigar shared a 5-part framework he uses to understand risk when developing large energy projects: ➀ 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐑𝐢𝐬𝐤: 𝐖𝐢𝐥𝐥 𝐈𝐭 𝐖𝐨𝐫𝐤? The risk that the underlying technology will not perform as intended. (Jigar notes that his LPO did not take this kind of risk. The technology had to be proven.) ➁ 𝐅𝐞𝐞𝐝𝐬𝐭𝐨𝐜𝐤 𝐑𝐢𝐬𝐤: 𝐂𝐚𝐧 𝐖𝐞 𝐆𝐞𝐭 𝐓𝐡𝐞 𝐈𝐧𝐩𝐮𝐭𝐬? The risk associated with securing the raw materials or inputs needed to run the facility. ➂ 𝐎𝐟𝐟𝐭𝐚𝐤𝐞 𝐑𝐢𝐬𝐤: 𝐖𝐢𝐥𝐥 𝐒𝐨𝐦𝐞𝐨𝐧𝐞 𝐁𝐮𝐲 𝐭𝐡𝐞 𝐏𝐫𝐨𝐝𝐮𝐜𝐭? The risk that there is no guaranteed buyer for the product or service the facility produces. ➃ 𝐂𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐑𝐢𝐬𝐤: 𝐂𝐚𝐧 𝐖𝐞 𝐁𝐮𝐢𝐥𝐝 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭? The risk that the facility cannot be built on time and on budget. ➄ 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐑𝐢𝐬𝐤: 𝐂𝐚𝐧 𝐖𝐞 𝐑𝐮𝐧 𝐈𝐭 𝐚𝐧𝐝 𝐄𝐚𝐫𝐧 𝐑𝐞𝐯𝐞𝐧𝐮𝐞? The risk associated with the day-to-day operations and maintenance of the completed facility. As you know from all the AI-focused commentary, we’re in a race to add as much energy as we can to the global mix. Some of these additions will use mature technology and commercial models that have been derisked through decades of use. But many of these additions will require further innovation, which means new risks. Our success will in large part depend on how effectively we can manage these risks. Step one is understanding what those risks are. Jigar Shah’s framework struck me as incredibly clear and powerful, exactly the kind of thing that would resonate in the board rooms where high-profile capital allocation decisions are being made. If big energy projects are your jam, this episode is worth a listen. === 𝘑𝘰𝘪𝘯 2,000+ 𝘦𝘯𝘦𝘳𝘨𝘺 𝘱𝘳𝘰𝘴 𝘸𝘩𝘰 𝘨𝘦𝘵 𝘮𝘺 𝘧𝘳𝘦𝘦 𝘸𝘦𝘦𝘬𝘭𝘺 𝘯𝘦𝘸𝘴𝘭𝘦𝘵𝘵𝘦𝘳 𝘧𝘰𝘳 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩, 𝘪𝘯𝘴𝘪𝘨𝘩𝘵𝘴, 𝘢𝘯𝘥 𝘮𝘢𝘳𝘬𝘦𝘵 𝘤𝘰𝘮𝘮𝘦𝘯𝘵𝘢𝘳𝘺 (𝘭𝘪𝘯𝘬 𝘶𝘯𝘥𝘦𝘳 𝘮𝘺 𝘯𝘢𝘮𝘦 𝘢𝘣𝘰𝘷𝘦).