The renewable energy sector needs to improve risk management and access alternative sources of capital as operational risks rise and governments cut funding due to the uncertain economic environment.
Based on a survey of 284 senior-level renewable energy executives, a new report by the Economist Intelligence Unit (EIU) and sponsored by Swiss Re canvasses the risks in financing, constructing and operating renewable energy projects as well as the risk management challenges that the renewable energy industry must confront.
The EIU report “Managing the Risk in Renewable Energy” maintains that the renewable energy sector may face an even more uncertain future if it fails to manage the growing risks associated with larger and more complex projects.
Cuts in government expenditures for the sector call into question the sustainability of public financial support for renewable energy developments, especially in Europe, according to the report. Cuts in solar feed-in tariffs range from 15 percent in Germany
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