Powering success: the five pillars of effective project controls in large-capital energy projects
Delivering Net Zero isn’t just about ambition, it’s about execution. The global transformation to net-zero for electricity is unprecedented in scale and complexity, with global electricity demand set to double by 2050 as fossil fuels are phased out in favour of renewables [1]. The result for electricity infrastructure? The IEA predicts that the global market for key clean technologies will triple to more than $2 trillion over the coming decade [2], including an increase in annual investment in transmission and distribution grids from ~$330bn today to a staggering ~$690bn in 2030 [3]. Keeping these projects on track and on budget has never been more important.
"Project controls are not just tools, they are foundational elements of project success.”
The UK remains an important part of this global effort, with rapid grid decarbonisation to date, a final phase-out of coal power this year, and the Clean Power 2030 Mission setting it up to be a leader among advanced economies [4]. By 2030, the UK aims to reduce total territorial emissions by at least 68% compared to 1990 levels [5]. With less than six years remaining, immediate action is required to accelerate infrastructure that connects low-carbon electricity to the grid [6]. But doing so is far from straightforward, with challenges spanning everything from planning and policies to investment and technological innovation.
The rise of the megaproject
Big problems require big solutions, and megaprojects deliver on a massive scale. These multi-billion-pound and multi-gigawatt endeavours are constructing unprecedented amounts of infrastructure for the clean energy sector. From Xlinks to Sun Cable, and Dogger Bank to Berwick Bank, record-breaking low-carbon infrastructure is now being developed and built at an astonishing rate. Megaprojects are essential to a successful energy transition, matching the scale of the global energy challenge while leveraging economies of scale to reduce costs and meet demand for sustainable power. These projects are increasingly critical to energy security, climate goals, and global prosperity as the energy transition progresses.
Yet this scale makes them inherently challenging, and the UK does not have the best track record. It stands to reason that bigger projects are harder to manage, with more staff, stakeholders, partners, interfaces, and ultimately, risk. You don’t have to look far to find examples of past projects suffering delays and cost overruns. Research by the University of Oxford shows that nuclear projects in the UK average 120% cost overruns [7], while HS2’s final costs may be more than double the initial £37.5bn estimate [8]. We must improve on this - and quickly - if we’re to deliver the clean energy revolution successfully.
Project controls are critical to success
Project controls - the capabilities and processes that allow executive leaders to direct and manage these vast undertakings - are a pivotal but often overlooked factor in the successful delivery of large-scale infrastructure projects. Encompassing cost, schedule, scope, risk, change, quality, and communication management, project controls give leaders the insight they need to understand their projects and intervene in a timely manner.
Successfully managing even one unprecedented energy megaproject is daunting, but many project developers and their supply chain partners are now handling several at once. National Grid expects to run 17 concurrent projects in the 2020s, compared to only 1 or 2 in previous decades [9]. Project controls must therefore not only be designed for vastly greater complexity and scale but also enable the alignment of these enormous programmes of work.
At Oaklin, we have supported some of the largest and most ambitious energy projects and programmes in the world, designing cutting-edge controls that enable them to deliver in a safe, effective, and agile manner. Drawing from our extensive experience, this article explores five core pillars of project controls essential for the successful delivery of large-capital energy projects.
- Begin with the end in mind
Energy projects face a range of technical, regulatory, financial, and safety challenges, each of which influences the design of project controls. As projects progress from planning to construction and operation, their scope and complexity grow, introducing more stakeholders, contractors, tasks, and risks. Controls must be right-sized for each stage - streamlined in early phases to avoid unnecessary rigidity, then scaled up as the project matures to maintain tight control of execution. This lifecycle-focused approach prevents costly rework and setbacks when real-world challenges arise.
Equally, controls must fit the specific organisational context and culture. A one-size-fits-all approach rarely succeeds in the dynamic energy sector, where innovation and established operations coexist. A new project developer, for example, has very different cultural and stakeholder needs than an established infrastructure operator within a larger group organisation. Project controls must be adaptable and responsive, giving leaders both resilience and agility as both the project and industry evolve.
- Create an integrated information ecosystem
Scalable, adaptable controls rely on having the right information systems and tools in place. Document management may be commonly included in project controls, but a wider information management strategy is often overlooked. This involves carefully considering how every piece in the digital “jigsaw puzzle” of information and data fits together. A robust digital architecture and ecosystem create the foundation for platforms, systems, and tools that work seamlessly together, enabling digital engineering, data-rich models, digital twins, and simulations that can optimise construction and operations. Real-time insights into project management, materials, and equipment can then flow seamlessly across the project, enabling leaders to make agile decisions as the project progresses.
Tools alone are not enough, however, and strong governance of data and information is critical. Without clear data management - covering accuracy, storage, and accessibility - project controls will lack a cohesive enabling function. Project teams must implement a strategic view of information management, to avoid technical issues such as access permissions or unscalable software arising as the project progresses. When data flows in the right way decision-making is faster, collaboration improves, and megaprojects are more likely to meet their objectives.
- Leverage automation and innovation
Technological innovation has transformed project controls, with tools available now that were unimaginable two decades ago. Real-time analytics, geospatial data, and AI-powered platforms provide unmatched insight into project performance, enabling leaders to navigate complexity with agility. As the energy challenges of tomorrow demand more sophisticated solutions, controls must be designed to evolve in step with advancing technology.
With a solid information ecosystem in place, project control teams can implement automated workflows and reporting dashboards to improve data access, analytics, and accountability. In today’s fast-paced project environments, streamlined and data-driven decision-making is essential. Automation also reduces manual effort and human error, increasing transparency across teams and accelerating on-time, within-budget delivery.
- Foster a culture of collaboration, communication, and proactivity
A digital ecosystem is only as good as the people that use it, and it is just as much about how teams collaborate and communicate around that data. A one-team culture within strategic partnerships, whether supply chain partnerships or joint ventures, is essential to align cross-functional teams, contractors, and stakeholders toward a single vision. Open, transparent communication enables project leaders to quickly identify challenges and make decisions faster, ensuring everyone involved in the project remains responsive in the face of inevitable changes.
Risk management is particularly dependent on culture. Effective management of risk is vital for megaprojects, which are inherently risky by virtue of their scale. This is especially true where interface risks arise between parts of the project and between teams. While documenting risks is straightforward, empowering teams to actively manage and own those risks is a key function of the project controls environment. A shared culture of accountability helps individuals to feel safe in proactively identifying risks and potential mitigations, which in has a dramatic impact on successful management of cost and schedule.
- Establish robust governance for resilience
Finally, in today’s unpredictable landscape, resilient governance frameworks tied to proactive risk management are critical. Economic instability, geopolitical tensions, and supply chain disruptions amplify perceived risks for investors. Governance must give confidence to stakeholders that the project is well-managed with robust processes, policies and procedures in place, tailored to the lifecycle stage, culture and scope of the project. This stability is particularly valuable given the uncertainty that is inherent in novel, unprecedented, and complex projects that require significant sums of capital to be invested. With resilient governance in place, leaders can reassure stakeholders that long-term outcomes remain secure.
Completing the net-zero puzzle
Achieving net-zero by 2050 is like assembling a complex puzzle, in which energy megaprojects are big, essential pieces. Project controls sit at the core, interlocking these pieces of the puzzle. Future-proofing mechanisms, information management, collaborative culture, proactive risk management, and strong governance all play a key role in ensuring the controls are fit-for purpose and appropriate for the task at hand. This holistic approach to project controls ensures projects remain resilient and flexible as the energy sector grows more complex.
Through Oaklin’s engagement with large-capital programmes of work in the energy sector, we have seen that project controls are not just tools, they are foundational elements of project success. By getting project controls right, we can enable the fast-growing group of clean energy megaprojects to deliver successfully, making a substantial contribution to the global energy transition and climate change.
Krishan Mistry
Consultant
Krishan is a highly motivated Consultant with a masters degree in Chemical Engineering from the University of Birmingham. At Oaklin, he has supported the delivery and change management aspects of digital transformation at a global petrochemicals company. He also created a corporate level strategy for a leading UK plumbing and heating merchant. Krishan enjoys playing a key role in the CSR working group and is keen to support wider communities through Oaklin’s charitable partners.
Ben Parsons
Partner
Ben is a Partner at Oaklin, focused on leading our exceptional teams working to help our clients deliver the Energy Transition, Net Zero, and the power system of the future. He provides strategic advice to major businesses, bringing deep experience of helping large organisations to deliver complex, technology enabled transformation. His experiences range from initial strategy definition through to leading programme mobilisation and hands-on delivery.
Ben has worked with a range of major Renewables and Energy Utilities clients leading business-critical change programmes and launching market disrupting technology to customers.
Ben holds a BA (Hons) degree in History from the University of Warwick, during which he commissioned as an officer in the Territorial Army and spent a year studying in Spain. He is also a keen musician, playing the trumpet in a local Big Band, and is one of the very few Management Consultants who can claim to have performed on the Pyramid Stage at the Glastonbury Festival.
Bibliography
- [1] Committee, Climate Change. The Sixth Carbon Budget: Electricity generation. 2020.
- [2] Agency, International Energy. Global market for key clean technologies set to triple to more than $2 trillion over the coming decade as energy transitions advance. [Online] IEA, October 30, 2024. [Cited: October 30, 2024.] https://www.iea.org/news/global-market-for-key-clean-technologies-set-to-triple-to-more-than-2-trillion-over-the-coming-decade-as-energy-transitions-advance.
- [3] World Energy Outlook 2024. s.l. : IEA, 2024.
- [4] Grimwood, Kate. Professor Robert Gross appointed to deliver clean power 2030 mission. [Online] Imperial University, October 15, 2024. [Cited: October 23, 2024.] https://www.imperial.ac.uk/news/257158/professor-robert-gross-appointed-deliver-clean/#:~:text=The%20UK%20government%20has%20appointed,the%20electricity%20grid%20by%202030..
- [5] Burnett, Nuala, Hinson, Suzanna and Stewart, Iona. The UK's plans and progress to reach net zero by 2050. s.l. : House of Comms Library, 2024.
- [6] Richardson, James, et al. Progress in reducing emissions: 2024 Report to Parliament. s.l. : Climate Change Committee, 2024.
- [7] Flyvbjerg, Bent and Gardner, Dan. How Big Things Get Done. s.l. : Penguin Press, 2023.
- [8] Tetlow, Gemma and Pattison, Jeremy. HS2: costs and controversies. [Online] Institute for Government, October 5, 2023. [Cited: October 24, 2024.] https://www.instituteforgovernment.org.uk/explainer/hs2-costs.
- [9] Pettigrew, John. EP.215 John Pettigrew, Chief Executive, National Grid. [Podcast] s.l. : Aurora Energy Research, 2024.