Journal of Electrical and Electronic Engineering

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Risk Management Methods Applied to Renewable and Sustainable Energy: A Review

Received: 05 August 2014    Accepted: 17 September 2014    Published: 17 October 2014
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Abstract

Renewable energy policy has always been recognized as a major incentive to the growth of renewable energy and market. In particular, in the last decade, renewable energy sources are considerably increased due to the supportive renewable energy policy worldwide. Policymakers keep on updating and revising policies in response to market changes and advances in technologies. At the same time, policymakers have shifted their perspectives from cost and benefit to risk and return so as to align with investors’ perspectives. As a result, risk management has to be kept accordance with the changing policy of renewable energy. The dynamic process is important to make certain that major risks are not unattended and managed. The intent of the research is to provide stakeholders in renewable energy projects, including policymakers, financiers, developers and risk management instrument providers, a thorough review of risk management of renewable energy policy and to better define those risks so that they can be adequately mitigated to attract future investment. Five major risks which include market, credit, operational, liquidity and political risks associated with renewable energy developments and markets have been identified. Particularly, renewable energy policy risk is investigated and commonly used risk management tools are reviewed and proposed to address the associated risks and uncertainties faced by financers, developers and investors. It is also intended to setup a place for stakeholders to start, either when they want to replicate current, or are trying to develop new, workable risk management measures for renewable energy policy.

DOI 10.11648/j.jeee.s.2015030101.11
Published in Journal of Electrical and Electronic Engineering (Volume 3, Issue 1-1, January 2015)

This article belongs to the Special Issue Sustainable and Renewable Energies and Systems

Page(s) 1-12
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Renewable Energy, Renewable Energy Policy, Risk Management

References
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  • Department of Electrical and Electronic Engineering, The University of Hong Kong, Hong Kong, China

  • Department of Electrical and Electronic Engineering, The University of Hong Kong, Hong Kong, China

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    Lee Cheuk Wing, Zhong Jin. (2014). Risk Management Methods Applied to Renewable and Sustainable Energy: A Review. Journal of Electrical and Electronic Engineering, 3(1-1), 1-12. https://doi.org/10.11648/j.jeee.s.2015030101.11

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    Lee Cheuk Wing; Zhong Jin. Risk Management Methods Applied to Renewable and Sustainable Energy: A Review. J. Electr. Electron. Eng. 2014, 3(1-1), 1-12. doi: 10.11648/j.jeee.s.2015030101.11

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    Lee Cheuk Wing, Zhong Jin. Risk Management Methods Applied to Renewable and Sustainable Energy: A Review. J Electr Electron Eng. 2014;3(1-1):1-12. doi: 10.11648/j.jeee.s.2015030101.11

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  • @article{10.11648/j.jeee.s.2015030101.11,
      author = {Lee Cheuk Wing and Zhong Jin},
      title = {Risk Management Methods Applied to Renewable and Sustainable Energy: A Review},
      journal = {Journal of Electrical and Electronic Engineering},
      volume = {3},
      number = {1-1},
      pages = {1-12},
      doi = {10.11648/j.jeee.s.2015030101.11},
      url = {https://doi.org/10.11648/j.jeee.s.2015030101.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jeee.s.2015030101.11},
      abstract = {Renewable energy policy has always been recognized as a major incentive to the growth of renewable energy and market. In particular, in the last decade, renewable energy sources are considerably increased due to the supportive renewable energy policy worldwide. Policymakers keep on updating and revising policies in response to market changes and advances in technologies. At the same time, policymakers have shifted their perspectives from cost and benefit to risk and return so as to align with investors’ perspectives. As a result, risk management has to be kept accordance with the changing policy of renewable energy. The dynamic process is important to make certain that major risks are not unattended and managed. The intent of the research is to provide stakeholders in renewable energy projects, including policymakers, financiers, developers and risk management instrument providers, a thorough review of risk management of renewable energy policy and to better define those risks so that they can be adequately mitigated to attract future investment. Five major risks which include market, credit, operational, liquidity and political risks associated with renewable energy developments and markets have been identified. Particularly, renewable energy policy risk is investigated and commonly used risk management tools are reviewed and proposed to address the associated risks and uncertainties faced by financers, developers and investors. It is also intended to setup a place for stakeholders to start, either when they want to replicate current, or are trying to develop new, workable risk management measures for renewable energy policy.},
     year = {2014}
    }
    

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    T1  - Risk Management Methods Applied to Renewable and Sustainable Energy: A Review
    AU  - Lee Cheuk Wing
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    T2  - Journal of Electrical and Electronic Engineering
    JF  - Journal of Electrical and Electronic Engineering
    JO  - Journal of Electrical and Electronic Engineering
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    AB  - Renewable energy policy has always been recognized as a major incentive to the growth of renewable energy and market. In particular, in the last decade, renewable energy sources are considerably increased due to the supportive renewable energy policy worldwide. Policymakers keep on updating and revising policies in response to market changes and advances in technologies. At the same time, policymakers have shifted their perspectives from cost and benefit to risk and return so as to align with investors’ perspectives. As a result, risk management has to be kept accordance with the changing policy of renewable energy. The dynamic process is important to make certain that major risks are not unattended and managed. The intent of the research is to provide stakeholders in renewable energy projects, including policymakers, financiers, developers and risk management instrument providers, a thorough review of risk management of renewable energy policy and to better define those risks so that they can be adequately mitigated to attract future investment. Five major risks which include market, credit, operational, liquidity and political risks associated with renewable energy developments and markets have been identified. Particularly, renewable energy policy risk is investigated and commonly used risk management tools are reviewed and proposed to address the associated risks and uncertainties faced by financers, developers and investors. It is also intended to setup a place for stakeholders to start, either when they want to replicate current, or are trying to develop new, workable risk management measures for renewable energy policy.
    VL  - 3
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