Energy Infrastructure Projects: A Shocking Truth About Massive Cost Overruns

A new study from Boston University's Institute for Global Sustainability reveals that over 60% of energy infrastructure projects worldwide experience construction cost overruns. Analyzing $1.358 trillion invested in 662 projects across 83 countries between 1936 and 2024, the research encompassed diverse energy types, from wind and solar to nuclear and hydrogen. The study found that projects, on average, exceeded budgets by 40% and ran nearly two years behind schedule. Nuclear power plants were the worst offenders, with an average cost overrun of 102.5%, exceeding expectations by $1.56 billion. In contrast, solar and transmission projects performed best, often finishing ahead of schedule or under budget. Researchers suggest that smaller, modular renewable energy projects may offer lower financial risks and better budget predictability.