Risk Analysis in Implementation of Solar Energy Projects in Kerala

Abstract

India's growth rate is slow in the deployment of solar power projects when compared to other developing and developed countries. The Ministry of New and Renewable Energy (MNRE) have often criticized Kerala for their inability to meet target for solar power projects installation. The aim of this study is to explore the state of solar projects in Kerala, with an objective to create a knowledge base of multifarious risks and control procedures. This study enables to identify the main risk in implementing solar energy projects and develop a guideline which could serve to reduce the risks associated with investments in solar projects. In this study, survey was conducted amongst the different players of solar power project installation and operation to identify the various risk factors and sub factors. These factors were categorised and further quantified using the decision making tool, Analytic Hierarchy Process (AHP). Political risk, technical risk, financial risk and environmental risk are the prominent risk factors involved in solar projects installation. The impact of the sub factors are identified using AHP. Payback period and non-approval of on grid small scale projects from KSEB are the critical factors. The inattention in reduction of risks at organizational level, and project level, can substantially affect the solar projects at a catastrophic level. Overall, the need for future research is established in this study for investigating the capability of Project Management Offices in risk assessment and management.