Addy, M N; Akunyumu, S and Simons, B (2019) Key risk factors affecting renewable energy independent power producer (IPP) set-up projects in developing countries: The case of Ghana. Journal of Engineering, Design and Technology, 17(6), pp. 1340-1355. ISSN 1726-0531
Abstract
Purpose: Sustained access to efficient electricity plays an essential role in improving living conditions of people and contributes to the economic development of the nation as a whole. Volta River Authority (VRA) mainly manages the generation plants (hydropower sources and thermal plants) alongside independent power producers (IPPs). Power generation in the country has been influenced by myriads of factors. Thus, the purpose of this study is to assess the key risk factors affecting renewable energy of IPPs set-up project in Ghana. Design/methodology/approach: Quantitative approach was adopted for the study. Empirical investigation was carried out using the survey approach. The likelihood of occurrence of the risk and the degree of impact of same motivated the use of risk significance index to analyze the data and make deductions from the results. Findings: From the study, three key risk factors have high level of severity, which include long and complex procedures for authorization of project activities, stability of the policy environment and ease of obtaining rights to land. These risks could be found in the business/strategic risks and policy/regulatory risks categories, respectively. A total of 25 key risk factors had moderate level of severity and 12 key risk factors have low level of severity on renewable energy IPP set up projects. Practical implications: Top-ranked risk factors require maximum attention. The identified risks should be alleviated with strategies to reduce levels of severity by targeting either the likelihood of occurrence or the level of impact. This will serve as a catalyze to promoting renewable energy IPP set-up projects in Ghana. Originality/value: Key contribution of the paper to the body of knowledge is demonstrated by the empirical evidence of the risks IPPs are likely to encounter in setting up renewable energy plants in Ghana. The distinctive attribute of this study is further demonstrated by the fact that it focused on the set-up stage, which is a critical stage in the renewable energy provision value chain.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Ghana; independent power producers; renewable energy; risk identification |
| Index terms: | methodology, evidence, living condition, body of knowledge, renewable energy, developing country, economic development, independent power producer, stability, strategy, survey, risk identification, risk factor, investigation, land, power generation, value chain, low level, Ghana |
| Subjects: | environmental hazards, sociology, measurement and scaling, Geography, development economics, value chain strategy, financial risk, economic development, management, structural engineering, research methods, energy systems, knowledge management, real estate economics, data collection methods, evaluation and assessment methods |
| Topics: | Sustainability, Business Strategy, Cost Management, Engineering Principles, Information Management, Geographical Context, Research Practice, Urban Studies, International Construction, Supply Chain Management |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here