Managing risk profile of plants a must for investments in RE sector: Report

The risk profile of power plants must be managed to continue the trend of capital investment in the domestic renewable energy sector, a report said on Wednesday.

Trends such as inflation, issues related to costing and supply chains are impacting the renewable energy industry, making the current business environment a challenging one for risk managers, the WTW report said.

Despite the challenges, the renewable energy outlook in Asia remains promising, with significant capital injection expected into the sector. In India also, the renewable energy (RE) sector has seen an influx of capital investment, the report titled 'Renewable Energy Market Review 2023' said.

"The RE sector in India has seen an influx of capital investment and for this trend to continue, the risk profile of the power plant must be satisfactorily managed during the entire life cycle of the project. As the sector grows to its full potential, the role of intermediaries and specialists becomes even more critical, " Ankush Gupta, Practice Leader Renewable Energy said in the report.

The report further said that floating solar has gained traction and will play an important role in the energy transition of countries such as China, India and South Korea.

Contributing author Margaret-Ann Splawn, Executive Director of the Climate Markets & Investment Association, said, "Macro events and trends such as inflation, cost increases, security, and supply chains are impacting the renewable energy industry, making the current business environment a challenging one for risk managers."

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