Modular Construction and Digital Project Controls: A Strategic Path to Mitigating Power Project Cost and Schedule Risks

The global energy transition is accelerating, but traditional power projects remain plagued by cost overruns and delays. According to a 2020 MIT study, nuclear projects like Vogtle in the U.S. have seen costs balloon from $14 billion to $35 billion due to design changes, regulatory hurdles, and contractor mismanagement. These challenges underscore a critical need for innovation in infrastructure development. Modular construction and digital project controls are emerging as transformative solutions, offering capital-efficient pathways to scale renewable and nuclear energy projects while mitigating risks.

The Cost Overrun Crisis and the Case for Modularization

The Vogtle nuclear project's $21 billion cost overrun is emblematic of systemic issues in conventional construction. A 2024 MIT analysis attributes these overruns to fragmented supply chains, on-site labor bottlenecks, and rigid design processes. Sovacool & Ryu's 2025 analysis highlights how modular construction-where components are prefabricated off-site and assembled on-site-addresses these pain points. For instance, China Energy Engineering Corp Ltd (CEEC) has leveraged modular approaches to secure $15.3 billion in domestic and $11.8 billion in international contracts for green hydrogen and ammonia projects, achieving faster deployment and reduced operational risks, as noted in a China Daily report.

Modularization also aligns with the European Union's InvestEU program, which has deployed €100 billion in blended finance to support energy transition projects. By standardizing components and reducing on-site complexity, modular designs lower capital intensity and attract private investment, as seen in large-scale solar and grid modernization initiatives, according to a Net Zero Investor report.

Digital Project Controls: Enhancing Precision and Scalability

Digital tools are redefining project management in the energy sector. CMiC's 2025 case studies reveal how Building Information Modeling (BIM), robotics, and 3D printing are streamlining workflows. For example, Singapore's Tuas Port project uses digital twins to optimize operations before physical construction, reducing delays and rework, as described in a Renewable Energy Magazine article. Similarly, the UK's Bradford Low Carbon Hydrogen facility integrates real-time data analytics to monitor hydrogen production and grid integration, ensuring alignment with decarbonization targets, as noted in that same article.

Burns & McDonnell's digital project controls, though not explicitly detailed in recent sources, are reflected in broader industry trends. The adoption of LoRaWAN technology by European utilities-highlighted by the LoRa Alliance-demonstrates how scalable, low-cost connectivity improves grid resilience and interoperability, as noted in a Yahoo Finance report. These tools enable predictive maintenance, resource optimization, and risk-adjusted scheduling, critical for managing the complexity of energy transition projects.

Quantifying the Impact: Risk Reduction and Financial Returns

The financial benefits of modularization and digitalization are measurable. Sovacool & Ryu's data shows that Nabors Energy Transition Corp. II raised $305 million via a SPAC to fund carbon capture and renewable projects, leveraging modular infrastructure to reduce upfront capital outlays, as detailed in a TradingView report. Meanwhile, Masdar's planned 2026 IPO aims to scale its 100 GW renewable portfolio by 2030, with modular solar farms and digital grid controls minimizing execution risks, as noted in an Agbi report.

In nuclear energy, a 2020 MIT study advocates for small modular reactors (SMRs), which can be factory-built and assembled on-site, potentially avoiding the $21 billion Vogtle-style overruns. These reactors, combined with digital twins for predictive maintenance, could cut costs by 30-40% while accelerating deployment timelines.

Strategic Investment Opportunities

Investors seeking exposure to this shift should prioritize companies enabling modular construction and digital project controls. CEEC's international contracts and Nabors' SPAC model exemplify scalable, capital-efficient strategies. Additionally, firms like KEMA Labs, which ensure grid reliability through high-voltage testing, are critical enablers for integrating renewables, as noted in a Morningstar report.

The energy transition's success hinges on reimagining infrastructure. By adopting modular construction and digital tools, stakeholders can transform risk profiles, reduce overruns, and unlock trillions in clean energy investments. As Sovacool & Ryu and MIT's analyses demonstrate, the future of power projects lies in agility, not scale-making now the optimal time to act.