Managing the risk in renewable energy

In 2010 global investment in new renewable energy projects exceeded investment in new fossil fuel fired plants for the first time, largely driven by a mix of renewable energy incentives and political pressure to invest in less emission-intensive energy production. Yet although investments in renewa...

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Bibliographic Details
Format: Book
Language:English
Published: 2020
Online Access:http://dspace.uniten.edu.my/jspui/handle/123456789/14960
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Summary:In 2010 global investment in new renewable energy projects exceeded investment in new fossil fuel fired plants for the first time, largely driven by a mix of renewable energy incentives and political pressure to invest in less emission-intensive energy production. Yet although investments in renewable energy plants are growing,so are the risks. Political/regulatory risk and financial risk are on the rise against a backdrop of macro-economic uncertainty, while weather-related volume risk is rising up the agenda as investments in offshore wind farms accelerate. At the same time, the availability of risk management resources—including risk expertise, industry data and insurance cover—in the renewable energy sector remains limited, potentially restricting the sector’s access to development capital.