Feature release: Cost uncertainty classification now available in Southern Lights

Every energy project begins with numbers, but those numbers are rarely certain. With our new cost uncertainty feature, Southern Lights makes uncertainty visible, showing how it impacts project costs, profitability, and risk. The result: fewer scenarios, clearer results, and stronger cases for investment.
Cost uncertainty – featured image of this article

Project development in the clean energy space is going through a transformation. For years, developers relied on scattered spreadsheets, endless scenarios, and simplified assumptions to get projects to investment stage. The result was often inconsistent, hard to communicate, and too dependent on individual experience.

Southern Lights was built to change that. Our platform is creating a new standard for how projects are developed: more transparent, more structured, and better aligned with the decisions that matter. Each feature we release reflects this ambition.

Our new cost uncertainty feature is a clear example.

How this changes project development

The cost uncertainty update changes project development in three important ways:

  1. Fewer scenarios, clearer results
    One design now gives both the expected outcome and the possible range. That means less mechanical work, and more strategic insight.
  2. Better conversations with stakeholders
    Boards, investors, and banks don’t just see “€6/kg hydrogen.” They see “€6/kg ±25%.” That makes risks transparent and strengthens the credibility of the case.
  3. Smarter prioritization
    By showing which assumptions drive uncertainty, the platform helps teams focus their effort, whether it’s securing firmer CAPEX data, or negotiating energy prices.
Cost uncertainties
You can now classify the cost uncertainty in the platform

What cost uncertainty means for your project

Every project starts with numbers; CAPEX, OPEX, energy costs. But those numbers are rarely exact, especially in early development. A CAPEX estimate might be “€100 million, give or take 20%.” An OPEX forecast might be closer to guesswork. Yet, decisions worth hundreds of millions hinge on those assumptions.

Until now, developers had two imperfect choices: run endless scenarios to test every variation, or rely on fixed values that hide the real risk. Neither approach reflected reality.

With our new cost uncertainty feature, Southern Lights brings that reality into the open. You can now assign ranges directly to each cost item and see how those ranges affect key metrics like LCOH, NPV, or IRR. Instead of just one result, you see the expected value and the uncertainty around it.

Do you want to see how Southern Lights helps with your project development process? Request a guided demo now!

From hidden risk to informed decisions

At its core, project development is about reducing uncertainty step by step, moving from rough concepts to firm investment cases. Until now, that uncertainty has always been present, but hidden.

By putting uncertainty front and center, Southern Lights doesn’t just add a new feature. We set a new standard for how projects are developed: faster, clearer, and more convincing. It saves developers from unnecessary scenario work, helps stakeholders understand the real stakes, and gives decision-makers the confidence to move forward with eyes wide open.

Uncertainty will always be part of hydrogen and Power-to-X. But now, it’s something you can measure, show, and manage.

Related Articles

We think you might be interested in checking out the articles below. If not, visit our knowledge hub and browse through all the articles.