Assessment of risks associated with renewable energy investment in Ghana: A case study of Volta River Authority
Date
2021-06-18
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Abstract
This study assessed the risk associated with renewable energy investment at Volta River
Authority, a semi-structured interview and questionnaire were used to access data from
Management and staff of the Volta River Authority (VRA). The study reveals that the
company recognizes various risks associated with renewable energy investment, risk
identification is very crucial to plan appropriate intervention directed at fostering flow of
capital into the RE sector. The researcher gathered that most of the respondents agreed on
the impact of risks in the renewable investments in order to achieve corporate objectives.
The responses gathered further reveals that most of the respondents identify the various
barriers to deployment and mitigation for risks associated with Renewable Energy
Investment (REI). It was recommended that Volta River Authority should explore the
development of strategic alliance with complimentary players in the value chain
component suppliers, utilities and financial institutions to create risk resilient consortium
then hedging the significant risks associated to the disconnected across the value chain
steps. The company should also explore the use of bank guarantees and/or insurances to
secure engineering, procurement construction (EPC) and components suppliers to honor
their contractual quality and services obligations. Competence of staff is a necessity to
increase efficiencies in processes resulting in performance of renewable energy projects. It
was further recommended that a systematic approach to risk management that uses a
meaningful risk break down structure (RBS) and risk management plan. These aid better
risk identification and minimization.
Description
A thesis submitted to the Department of Construction Technology and Management,
Kwame Nkrumah University of Science and Technology, in partial fulfillment of the
requirements for the Award of a Degree of
Master of Science in Project Management
Keywords
Renewable, Energy, Investment, Ghana, Volta River Authority