Spotlight on Canadian power and utility megaprojects

Challenges in financing and delivery

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Globally, the power and utilities (P&U) industry is set to invest US$20 trillion in large-scale power infrastructure projects from 2016 to 2040, according to the International Energy Agency. This new wave of investment should transform the world’s energy future — as well as stimulate economies, create societal benefits and support long-term growth.

Canada, more than most countries, has a diverse mix of energy generation. The mix of how electricity demand will be met, and the size of the investment required, means that defining and controlling the capital project is key if P&U in Canada are to create maximum value.

Spotlight on Canadian P&U megaprojects drivers of growthUnderstanding the Canadian project landscape

To understand the full extent of the pressure to deliver P&U infrastructure projects in Canada, it’s important to understand the market context. When you consider these three drivers of growth, the size of the investment challenge facing the P&U sector in Canada is clear. 

Capital and technology investments Spotlight on Canadian P&U megaprojects technology investments

The Canadian P&U sector will need significant investment in power plants and transmission and distribution for greater development of renewables. This is needed if Canada’s going to meet future demand as well as the environmental targets laid out at the United Nations Climate Change Conference in Paris (COP21).

Cumulative investment in technology in the power sector in North America is anticipated to be US$2.7 trillion from 2016 to 2040, with the majority allocated to renewables.

Project cost and schedule overruns

We analyzed 100 of the world’s largest (by capital expenditure) power generation, transmission and distribution and water projects across all asset life cycle stages — from pre-financing through to decommissioning.

A complex mix of factors is creating tough financing and delivery challenges that are sinking business cases for many infrastructure projects. In this report, we explore the challenges facing Canadian P&U companies in financing and delivering projects on time and on budget.


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