Alan McMahon

A renewable energy project can look attractive on paper but still fail before construction because the site, grid connection, planning status, expected revenue or financing structure does not work. The best way to protect development capital is to treat the project as a series of controlled decisions. At each stage, the developer gathers evidence, updates the commercial case and decides whether the project should proceed, change, pause or stop. The stages of a renewable energy project...

Key risks in renewable energy projects and how to manage them should be understood before land is acquired, contracts are signed, or capital is committed. A promising wind or solar project can quickly lose value if its grid connection is delayed, energy production falls below forecast, construction costs rise, or the expected electricity price does not materialise. The solution is not to remove every possible risk. It is to identify material risks early, measure their financial effect, assign...