Booming solar market and falling prices of solar projects have thrown many options for developers. That is the precise reason that today more and more developers are jumping in to solar projects with every passing day the fossil fuels to solar powered divide narrowing. The reverse bidding in the NTPC Vidyut Vyapar Nigam Ltd (NVVN) bidding has already thrown some pleasant surprises over the cost of projects. Some purists feel that with such low bids the viability of these projects would be at stake.
The fierce competition has brought about problems galore for even funding agencies. As a result many such projects have not been able to achieve financial closure so far. Solar Projects Risk Management has become an absolute necessity for developers.
Three phase approach as suggested in Jawaharlal Nehru National Solar Mission was expected to bring about positive results. It may still bring in the desired results to a reasonable extent, provided sanity prevails amongst the developers. In an effort to bag the projects at any cost has resulted in many of these developers under cutting. The possible penal measures with some harsh penalties would help the planners to avert the crisis in future.
Solar Projects Risk Management which a developer should consider:
- Construction risk
- Company risk
- Environmental risk
- Financial risk
- Market risk
- Operational risk
- Technology risk
- Political and regulatory risk
- Climate and weather risk
- Sabotage, terrorism and theft risk
With advances in the Solar Projects Risk Management techniques all the above risk can be addressed through a lot of measures. There are many consultants who have expertise in handling risk management processes.