| Original language | English |
|---|---|
| Article number | 00006 |
| Journal | E3S Web of Conferences |
| Volume | 61 |
| DOIs | |
| Publication status | Published (VoR) - 31 Oct 2018 |
| Event | 2018 International Conference on Renewable Energy, ICREN 2018 - Barcelona, Spain Duration: 25 Apr 2018 → 27 Apr 2018 |
Funding
In the last decade, various studies have attempted to identify the different types of risk associated with renewable energy projects. For example, Xu et al. [39] identified 5 Critical Risk Factors (CRFs) by conducting content analysis on the risk events data of 14 waste-biomass incineration generation projects in China. These factors are enironmental risk, payment risk, insufficient waste supply, lack of support infrastructure, and disposal of non-lincensed waste. However, Langholtz et al. [2] in their review of the evidence from the 2012 U.S. drought, identifies six risks in the bioenergy industry due to extreme weather events including shortages of biomass feedstock, higher feedstock cost, product price volatility, seasonal scarcity, input price volatility, and the availability of water. Lee and Zhong [38] introduced the hybrid bond project financing instrument, illustrating how the bond could be used to finance and manage major project uncertainties including quantifiable: credit risks and market risks, and unquantifiable: operational risks, liquidity risks, and political risks. To investigate both the internal and external risk factors in the process of implementing a renewable energy project, Rolik [40], employed strategic management tools such as SWOT analysis and McKinsey matrix to classify the risks into: market risks, project risks and management risks. This view is supported by Jinrong and Enyi [41]who writes that risks inherent in energy projects include market risk, project quality risk, management risk, as well as technology risk, , political and legal risk, client risk, and financial risk. However, in another major study, Guerrero-Liquet, et al. [43] investigated risk management tools in renewable energy facilities based on the Project Management Institute’s (PMI) Project Management Body of Knowledge (PMBOK® Guide), using information gathering (Delphi and Checklist) and diagram techniques (Fishbone Diagram (Ishikawa)) to categorized risks into technical risks, price risks and financial risks. A broader perspective has been adopted by Gatzert and Kosub [35] who conducted an in-depth literature review on the different type of risks associated with renewable energy projects and categorises them into strategic/business risks, transport/construction/completion risks, operation/maintenance risks, liability/legal risks, market/sales risks, counterparty risks, and political/policy/regulatory risks. Together these studies provide important insights into the different risks asscoiated with renewable energy projects. Moreover, the studies presented thus far provide evidence that suggests that by far the greatest risks associated with renewable energy projects including bioenergy projects may be categorised into technical risks, political and regulatory risks, financial risks, social risks, and environmental risks.
Keywords
- Bio-energy
- Project Management
- Renewable Energy
- Risks, Risk Management