A survey of 389 energy firms by US consultants Inverto found supply shortages, talent gaps and volatile prices are putting investments at risk.
It found that on-time and on-budget delivery, as well as profitability, are the top priorities for CAPEX projects, however, long lead times and cost overruns—often ranging between 10% and 35%—are major obstacles.
More than half of the companies surveyed expect to spend over €5 billion (£4.1 billion) annually between 2025 and 2030. Yet, opinions on price trends remain divided with an even split between those expecting prices to rise, fall or stay stable.
Many companies are investing in long-term supplier relationships to stabilise costs and reduce risks.
The report found that 39% are using long-term agreements (LTAs), 38% are engaging in joint ventures, and 36% are forming strategic partnerships to secure supply chains.
Despite this only 10% of companies give procurement teams a leading role in CAPEX projects. The majority still see procurement as operational rather than strategic, a model that no longer fits the energy transition.
With supplier markets under strain and global demand for grid components soaring, energy firms must rethink their procurement strategies.
