Despite the USD10 trillion of new investment expected within the renewable energy industry over the next 20 years, asset managers face key challenges that are putting profits and performance at risk.
From 2015 to 2017, project returns dropped, on average, over 100 basis points (bps) irrespective of region across an energy project’s lifecycle, from its final investment committee approval and notice to proceed for construction through a project’s commercial operation date and first year in operation.
The competitiveness of asset managers is increasingly driven by the better management of data and performance visibility to optimize their most critical activities and expenditures across financial, commercial, and technical asset management and maintenance.
In this point of view, we detail specific levers that can be activated by asset managers and O&M providers to boost IRR, notably in operations (O&M contract optimization, O&M activities automation, data usage to prevent downtime frequency, etc.), finance and economic (digitalization of data collection and management across all assets and along the lifecycle, etc.) and organizations.