Forvis Mazars: material and labour costs can increase energy project budgets by up to 20%

Material and labour costs frequently contribute to energy project budget increases of up to 20% compared to initial estimates, according to the Forvis Mazars study, Strengthening supply chains in energy. At the same time, only 35% of energy and infrastructure executives say they are highly confident in their organisations' ability to manage the impact of trade tariffs on costs, compared with a global average of 41%.

The findings come at a time when Romania is accelerating the development of new generation and storage capacity, with the focus increasingly shifting from planned projects to actual implementation capability. In February 2026, the Romanian Energy Regulatory Authority (ANRE) granted setting-up authorisations for renewable electricity generation capacities totaling 849.36 MW, alongside 596 MW of energy storage capacity.

Romania: from project development to delivery capacity

The scale of newly authorised capacity highlights the strong pipeline of projects currently under development. However, turning these projects into operational assets requires successful completion of financing, construction, grid connection and commissioning stages.

Against this backdrop, recent regulatory developments have placed greater emphasis on financial commitment and the ability to effectively deliver projects. In May 2026, ANRE increased the financial guarantee required for grid connection applications from 5% to 20% of the connection fee value (excluding VAT) for projects above 1 MW subject to the new connection requirements. The authority also introduced a financial guarantee of €30/kW for applicants seeking setting-up authorisations, to remain in place until acceptance of the works.

According to ANRE, these measures are intended to increase accountability among project developers, reduce the risk of speculative grid-capacity reservations and support more efficient use of the electricity network. In February 2026, the authority suspended the setting-up authorisation for a wind power project for three months, marking the first such suspension, after the developer failed to provide proof of financing.

These developments point to a shift in focus: as the pipeline of energy projects continues to expand, the gap between projects under development and those that ultimately become operational will increasingly depend on access to financing, grid infrastructure, equipment and execution capabilities.

“As the energy sector enters a new stage of development, the focus is shifting from portfolio expansion to companies’ ability to transform projects into operational assets and manage market volatility. In this environment, success increasingly depends on how effectively developers control costs, manage suppliers and execute projects under uncertain conditions. For large-scale projects, execution discipline can be just as important as access to financing”, mentioned Vasile Andrian, Partner, Head of Audit & Financial Advisory, Forvis Mazars in Romania.

Supply chains become a strategic factor for energy projects

Implementation challenges are not unique to the Romanian market. Globally, energy projects are operating in an environment shaped by geopolitical tensions, trade disruptions, grid constraints, permitting delays and limited industrial capacity. At the same time, the energy transition relies on projects with long development cycles that depend on specialised equipment, critical materials and cross-border supply chains.

Despite these challenges, the appetite for international expansion remains strong. According to the study, 82% of energy and infrastructure executives say their organisations plan to expand internationally. However, expansion strategies are becoming more selective amid geopolitical uncertainty, execution risks and growing supply chain constraints.

Access to critical materials, specialised components, manufacturing capacity and reliable suppliers is playing an increasingly important role in determining project feasibility, costs and delivery timelines. For the energy transition, these dependencies include critical minerals, solar panels, wind turbine equipment, inverters, batteries and grid infrastructure. The concentration of such resources and production capabilities in a limited number of regions can create bottlenecks, cost volatility and project delays.

As a result, supply chains are no longer viewed merely as an operational support function. They are becoming a key consideration in investment decisions. The viability of a project depends not only on financing and technical design, but also on the ability to secure the required materials, components, suppliers and regulatory approvals within realistic timelines.

Diversifying sourcing strategies, improving visibility over critical dependencies and integrating supply chain risks into project design and investment assessments are therefore becoming increasingly important for strengthening the resilience of energy projects.

From operational risks to financial implications

For energy projects, which are characterised by significant capital investment and long development cycles, the impact of delays and cost increases extends well beyond operational considerations. Budget overruns, supply chain disruptions and changing market conditions can alter the assumptions underpinning the original investment decision, affecting projected returns, financing requirements and expected cash flows.

The study also highlights the governance implications of these challenges. As supply chains become increasingly critical to project success, they require greater visibility at leadership level and closer alignment between investment decisions and actual execution capabilities.

Marius Pirpiliu, Director, Audit & Assurance, Forvis Mazars in Romania, added: “As energy projects become increasingly complex, including through the integration of storage assets and the evolution of revenue models, the information underpinning investment decisions is becoming more complex as well. In this context, governance, internal control and reporting processes play an essential role in providing an accurate view of project performance and the risks associated with their delivery. Robust oversight is critical to ensuring that financial and operational realities remain aligned throughout the project lifecycle.”

From planned capacity to operational assets

For the energy sector, the next phase of the transition will be increasingly defined by companies’ ability to convert planned projects into operational assets. In an industry characterised by long-term, capital-intensive investments and exposure to multiple external risks, the ability to deliver under constrained conditions is becoming a key determinant of success.

For Romania, the development of new generation and storage capacity creates significant opportunities, but it also brings implementation challenges into sharper focus. Access to financing, grid infrastructure, equipment and suppliers, as well as effective cost management and operational resilience, will all influence the extent to which projects currently under development ultimately become operational assets.

In this context, the differentiating factor will not simply be the size of a company’s project pipeline, but its ability to turn investment ambition into operational, financially viable and resilient energy assets.

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Press contacts

Emilia Popa, Head of Marketing, Communication, and Business Development,

Forvis Mazars in CEE & in Romania
emilia.popa@forvismazars.com  / +4 0741 111 042

Mădălina Lazăr, PR & Corporate Communication Manager, Forvis Mazars in Romania
madalina.lazar@forvismazars.com  / +4 0763 385 622