Portfolio Approach: Not All Projects Are Equal

A real energy programme is not one project but a pipeline of them, competing for the same limited capital and management attention. Ranking that pipeline purely by NPV treats every pound of value as identical, when in practice two projects with the same NPV can carry very different risk, deliver very different side-benefits, and fit the organisation's strategy in very different ways. The portfolio approach is how an energy manager sequences a whole programme so it manages cash, controls risk, and keeps momentum. This closing lesson covers the three factors NPV misses and the sequencing that follows from them.