🇩🇪Germany

Fehlerhafte Kostenestimation in Machbarkeitsstudien

1 verified sources

Definition

Cost overruns in German hydroelectric projects stem from inaccurate prefeasibility modeling. Stuttgart research identifies costing equation accuracy as 'the strongest affect on outcome of cost analysis.' Manual, spreadsheet-based estimation approaches introduce systematic errors; Monte Carlo simulations show wide variance in NPV projections. RETScreen and comparable methodologies, when properly calibrated, reduce estimation error by ~30-50% vs. baseline approaches.

Key Findings

  • Financial Impact: 5-15% of total project capex (€500K–€10M+ per project); 30-40 hours/month in cost re-estimation and scope change management
  • Frequency: Per project development phase; 1-2 major projects per operator per decade
  • Root Cause: Manual cost equation development; inadequate validation against historical data; lack of Monte Carlo risk simulation; insufficient calibration to German-specific labor/supply costs

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Hydroelectric Power Generation.

Affected Stakeholders

Project Estimators, Finance Managers, Risk Officers, Development Engineers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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