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Decarbonization and efficiency: How the energy industry and regulations are making new demands on project management

EU targets, new environmental regulations and increasing expectations of sustainability are putting energy projects under pressure. Find out how project managers can master these challenges and implement projects more efficiently, in compliance with regulations and successfully.

Decarbonization and efficiency: How the energy industry and regulations are making new demands on project management
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1. why decarbonization is no longer just a
"nice-to-have"

  • The EU has committed to reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. The targets of Fit for 55, REPowerEU and other initiatives are increasing the pressure on energy projects enormously.

  • For energy companies, this means new technologies (renewables, storage technologies, hydrogen, carbon capture and storage), stricter limits, more frequent audits and verification.

  • At the same time, stakeholder expectations are rising - customers, investors and regulatory authorities now demand not only efficiency, but also sustainability in all project phases.

2 Regulatory challenges that project managers need to be aware of

The challenge Impact on projects
Approval procedures & environmental requirements Delays in planning and approval processes, often years, can drive up costs. Studies show, for example, that regulatory delays increase electricity prices by up to 10% and CO₂ emissions by around 4%.(ESRI)
Fragmented legal framework & inconsistent requirements Different requirements per federal state or EU country, different environmental standards, different rules for grid connections, etc. make standardized processes difficult.
Funding & incentives There is often a lack of clear funding programs or subsidies to cover start-up costs. High-risk projects (e.g. due to uncertainty regarding approvals) have difficulty obtaining capital.
Monitoring & reporting Obligation to report on sustainability (e.g. EU directives, environmental certificates), often very detailed monitoring, verification and data maintenance required.
Risk management New technologies bring new risks - e.g. storage technologies, hydrogen infrastructure, etc. It is not uncommon for there to be uncertainties about environmental consequences, technical feasibility or grid stability.

 

3. practice: effects of regulatory delays

  • A recent study by the Economic and Social Research Institute (ESRI) shows that delays in planning and approval processes in Ireland have led to electricity prices rising by up to 10% when approvals are delayed. ESRI

  • According to an analysis by the World Economic Forum, approval procedures for wind energy projects in Europe often take seven to nine years, sometimes even more than 10 years. Such delays can account for 10-35% of project costs. (Source: World Economic Forum)


4. five strategies how project managers can master decarbonization & efficiency

Here are specific steps that project managers can take to tackle the challenges mentioned and realize efficiency gains at the same time:

4.1 Involve regulatory experts early on

  • Check which laws, regulations and permits are relevant as early as the concept phase (environment, grid connection, emissions trading, etc.)

  • Take an interdisciplinary approach: law, environment, technology and financing together as a team.

4.2 Standardized approval processes & one-stop stores

  • Where possible, use "one-stop-shop" mechanisms or centralized approval authorities to avoid overlap and repetition.

  • EU initiatives such as PCI / PMI (Projects of Common Interest / Projects of Mutual Interest) offer accelerated procedures for high-impact projects. (Source: Energy+1)

4.3 Transparent project planning with reserves & buffers

  • Plan time and cost buffers for approval and environmental assessment procedures.

  • Use scenario planning tools: What if approvals are delayed? What impact does this have on budget & milestones?

4.4 Digital tools, monitoring & reporting

  • Implement software solutions that provide real-time data (e.g. on emissions, project status, environmental key figures).

  • Use dashboard systems that involve different stakeholders - from technology to environment to administration.

4.5 Sustainability as an integral part of the project culture

  • Set clear targets: e.g. emissions reduction, energy efficiency, CO₂ reduction as KPIs.

  • Training & awareness-raising: All project members must understand why decarbonization is relevant.

  • Document measures and progress - this strengthens the trust of stakeholders and facilitates funding and approvals.

5. success stories

  • Ørsted has drastically reduced its emissions since 2006. The company works according to the criteria of the Science-Based Targets Initiative (SBTi), which shows that ambitious targets are achievable - especially when combined with long-term planning and transparency. ( Source: Science Based Targets Initiative)

  • The EU studies on regulatory delays (ESRI) show that change is possible - e.g. by speeding up approval processes and closer coordination between authorities. ( Source: ESRI+1)


6 What COMAN can contribute in concrete terms

COMAN software offers project managers in the energy sector tools and structures to master the challenges mentioned:

  • Central platform for documenting all approval deadlines and environmental requirements

  • Dashboard functions to clearly track milestones, risk factors and regulatory requirements

  • Collaboration tools so that all stakeholders - technology, environment, administration - are always on the same page

Conclusion

Decarbonization and regulatory pressure are not obstacles, but opportunities for energy projects that are future-proof.

Project managers who consciously integrate regulatory requirements from the outset, rely on transparent planning and use digital tools not only manage their projects more efficiently, but also gain the trust of stakeholders, authorities and the public.

 

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