The rapid growth of the renewable energy sector has created immense investment opportunities, but these projects come with a unique and complex set of risks that differ significantly from traditional energy infrastructure. From the unpredictability of weather resources to the complexities of project finance and evolving regulatory landscapes, a failure to identify and mitigate these risks can jeopardize a project's financial viability and even lead to its collapse. A systematic and robust approach to risk assessment is therefore not just a best practice; it is an essential component of the project development and financing process, providing the necessary assurance to investors, lenders, and stakeholders.

This program provides a comprehensive and practical deep dive into the principles and techniques for conducting a thorough risk assessment for renewable energy projects. Participants will gain a fundamental understanding of how to identify, analyze, and manage risks across the entire project lifecycle, from initial development through to operation and decommissioning. The course covers key risk categories, including technical, financial, political, and environmental, and provides a toolkit of mitigation strategies. By focusing on real-world case studies and hands-on exercises, attendees will be equipped to protect their investments and ensure the long-term success and bankability of their renewable energy projects.

Duration: 10 days

Target Audience:

• Renewable Energy Project Developers
• Project Finance Professionals
• Investors and Financial Analysts
• Legal Professionals in the Energy Sector
• Environmental and Social Consultants
• Project Managers and Engineers
• Insurers and Underwriters
• Government and Regulatory Officials
• Business Development Managers
• Asset Managers in Energy

Objectives:

• Master the core principles of a systematic risk assessment for renewable energy projects.
• Learn to identify and classify the key risks across a project's lifecycle.
• Understand the methodologies for qualitative and quantitative risk analysis.
• Grasp the complexities of securing project financing in a high-risk environment.
• Develop proficiency in creating a comprehensive risk mitigation and management plan.
• Explore best practices in due diligence and contractual risk allocation.
• Learn about robust approaches to managing political and regulatory uncertainties.
• Identify the critical legal and insurance instruments for risk transfer.
• Develop skills in communicating project risks to stakeholders and investors.
• Formulate strategies for building a more bankable and resilient project.

Course Modules:

Module 1: Foundations of Project Risk

• The concept of risk in project management
• The project lifecycle of a renewable energy project
• The key stakeholders in a project
• The difference between a risk and an issue
• The importance of a risk management plan

Module 2: Risk Identification

• Techniques for risk identification (e.g., brainstorming, checklists)
• The role of a clear and focused research question
• Creating a comprehensive risk register
• Engaging stakeholders in the identification process
• The importance of a "risk and mitigation" plan

Module 3: Risk Classification

• Categorizing risks: financial, technical, market, legal
• The importance of a simple scorecard and a dashboard
• Specific risks for solar (e.g., resource variability, module degradation)
• Specific risks for wind (e.g., wind speed variability, grid connection)
• Specific risks for hydro and geothermal projects

Module 4: Technical and Resource Risk

• Assessing the accuracy of resource data (e.g., solar irradiance, wind speed)
• Technology performance and reliability risks
• The importance of a "data story map"
• Sourcing and supply chain risks
• Construction and commissioning risks

Module 5: Financial Risk Assessment

• The basics of project finance for renewables
• The importance of a clear and consistent reporting style
• Market risk (e.g., energy price volatility, PPA risk)
• Interest rate and currency fluctuation risk
• Credit risk and counterparty risk

Module 6: Political and Regulatory Risk

• The impact of government policy on project viability
• Changes in subsidies, feed-in tariffs, and tax laws
• The importance of a program's theory of change
• Land acquisition and permitting risks
• Political instability and force majeure

Module 7: Environmental and Social Risk

• The role of an Environmental and Social Impact Assessment (ESIA)
• The importance of a "stakeholder analysis"
• Land use conflicts and community opposition
• Biodiversity and habitat risks
• The role of environmental and social due diligence

Module 8: Risk Analysis

• Qualitative risk analysis: probability and impact
• The use of a risk matrix
• Quantitative risk analysis (e.g., Monte Carlo simulation)
• The importance of a clear and compelling KPI
• Sensitivity analysis

Module 9: Risk Mitigation & Management

• The four key risk responses: avoid, mitigate, transfer, accept
• Strategies for risk mitigation (e.g., contractual clauses)
• The role of a "risk and mitigation" plan
• The use of a simple scorecard and a dashboard
• Developing a contingency plan

Module 10: Contractual Risk Allocation

• The role of a Power Purchase Agreement (PPA)
• The importance of a clear and focused research question
• Engineering, Procurement, and Construction (EPC) contracts
• Operations and Maintenance (O&M) contracts
• The role of a "data story map"

Module 11: Insurance and Risk Transfer

• The role of insurance in risk management
• Different types of insurance for renewable projects
• Political risk insurance
• The importance of a program's theory of change
• The role of a clear and consistent reporting style

Module 12: Due Diligence

• The role of a technical due diligence report
• The importance of a "stakeholder analysis"
• Financial due diligence
• Legal due diligence
• Environmental and social due diligence

Module 13: Project Finance

• An overview of project finance structures
• The role of a lead arranger and a syndicate of lenders
• The importance of a clear and compelling KPI
• Equity and debt financing
• The financial model and its role in risk assessment

Module 14: Case Studies

• Case study: A successful wind project financing
• Case study: A solar project that failed due to regulatory risk
• Case study: A hydro project's social risk management
• Lessons learned from real-world examples
• The role of a "risk and mitigation" plan

Module 15: Software and Tools

• Overview of project management software
• The use of financial modeling tools
• The importance of a clear and focused research question
• Risk management software
• Best practices for using digital tools

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.