Financial risk is seen as the biggest hazard for renewable energy projects by business chiefs, according to new research by the Economist Intelligence Unit (EIU) and Gherkin-based insurance firm Swiss Re.
The EIU report, ‘Managing the risk in renewable energy’ looked at the types of risk facing operators and financiers. It found that three quarters (76%) of business heads rated financial matters, such as finding money to fund projects, as medium or high risk – more worrying than issues such as operational risks or changes to legislation.
Aviva Freudmann at the EIU, who directed the research, said: “Firms consider financial risks the most significant.” But she added that while 70% of businesses were able to identify risks, only half were able to transfer risks to third parties such as insurers.
The report, based on a survey of 284 energy and finance executives and further interviews, also suggests that renewable energy will double in importance for companies’ business strategies in the next three years.