Investment Barriers and Financing Solutions for Critical Energy Infrastructure Projects

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Authors: Rifah Tasnia, Md Shahdat Hossain
Cited by: 1

Abstract

Background: Infrastructure projects are vital for economic development, energy security, and transition to sustainable development. Financing of energy infrastructure projects is still difficult because of substantial capital costs, regulation risks, and investment risks. This study examines key investment obstacles, favorable financing approaches, and links between financing instruments, government support, risk assessment, private investments, and performance of energy projects in the USA. Method: A quantitative cross-sectional survey was carried out among US energy experts from January to March 2026. Data were obtained from 165 valid participants through a structured online questionnaire. The measurement of six constructs was conducted by using the five-point Likert scale. Descriptive statistics, reliability analysis (Cronbach's alpha, Composite Reliability, Average Variance Extracted), and Pearson correlation analysis were conducted in IBM SPSS Statistics 29. Results: The Public-Private Partnerships (26.1%) and government subsidies (22.4%) were found to be the most favored financing alternatives. High costs involved in the initial phase (27.9%) and delays in regulations and permits (21.2%) were determined to be the leading barriers to investment. All the constructs possessed very high reliability (Cronbach’s α = 0.873–0.901; AVE = 0.606–0.676). Financing alternatives (r = 0.736), private investments (r = 0.718), and government policies (r = 0.681) were found to have a very high positive correlation with the performance of energy projects, while barriers to investment had a very high negative correlation (r = −0.563). Conclusion: Cooperation in financing arrangements, favorable government policies, proper risk assessment, and higher involvement of private sector.

Fields of Study & Subjects

Public-Private Partnership Projects Energy Efficiency and Management Sustainable Finance and Green Bonds

Publication details

Journal / source
Pacific Journal of Advanced Engineering Innovations
Publisher
Ordient Publishers
Volume
3
Issue
1
Pages
89–96
Publication date
30 June 2026