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RENEWABLE ENERGY 45 SANJITH. S. SHETTY VICE CHAIRMAN & MANAGING DIRECTOR; SOHAM RENEWABLE ENERGY INDIA PVT. LTD Risks associated with Renewable Energy Although investments in renewable energy plants are growing, so are the risks. Political/ regulatory risk and financial risk are on the rise against a backdrop of macro-economic uncertainty, while weatherrelated volume risk is rising up the agenda as investments in offshore wind farms accelerate. The level of investment in renewable energy projects surged largely driven by a combination of incentives to invest in renewable energy and political pressure to reduce emissions. For the growing volume of planned renewable energy developments, risk management is a critical element in securing project financing. As investments in renewable energy plants grow, so too do the risks inherent in energetica INDIA · MAR16 owning, building and operating such plants. In particular, political and regulatory risk and financial risk are becoming acute, as the macroeconomic outlook for many countries deteriorates. In addition, weather-related volume risk is particularly acute as investments in wind farms continue to expand. Yet, the risk management resources including industry expertise, operating Data and specialized risk transfer products available to the renewable energy sector remain, in some respects, limited. This raises important questions over the future development of the renewable energy sector worldwide. Financial risk is the most significant risk associated with renewable energy projects, highlighted by 76% of respondents. Other significant risks include political and regulatory risk (flagged by 62%), and weather-related volume risk (mentioned by 66% of respondents involved in wind power)...reference ‘The Economist Intelligence Unit Limited’ The renewable energy sector faces significant obstacles in managing its risks. Although 70% of respondents say they are successful in identifying risks, fewer Say they are successful at mitigating and transferring risks 61% and 50% respectively. Renewable power executives rely on diversification to mitigate risk. Diversification across geographies and technologies as the single most powerful tool to mitigate regulatory risk and weather-related Volume risk. In addition, operational risk can be mitigated by relying on proven technologies. Insurance is the most common mechanism to transfer risk to third parties. Insurance policies are used to transfer risk to third parties, making it the most Common mechanism to transfer risk. Alternative risk transfer mechanisms such as weather- based financial derivatives appears to be growing, Make additional use of special purpose vehicles. More standardized Weather derivatives, insurance and hedging contract. I feel solution lies in more comprehensive information and data on renewable energy technologies, coupled with industry education programs, may enable development of expertise both within the renewable energy sector and among external stakeholders. This will pave way for wider availability of effective risk transfer products  VAGISH SHARMA ANALYST & PROGRAM DEVELOPMENT; NATIONAL SKILL DEVELOPMENT CORPORATION Sustainable Resource Management via Skilled Manpower: Opportunity & Barriers Efficient waste management is built upon technology and social effort. However, to manage the waste in India, a skilled manpower is needed, which can manage/compost the waste effectively. Every day, urban India generates 188,500 tonnes of MSW - 68.8 million tonnes per year - and waste generation increases by 50% every decade which includes Institutional waste, Demolition and construction wastes, Treated bio-medical waste, Waste due to drains and Sludge from industries. At this scale, an effective waste management system and highly trained human resource is needed. In India, waste management is still struggling to assert itself as an important part of the environmental agenda and earn a status of established industry. There is a need to bring change in negative public perceptions about waste management which has often been labelled as ‘dirty’ and ‘unskilled’. The variety of opportunities within the sector mean that it can appeal to a huge pool of talent, provided it positions itself as the place to be for those in search of skilled and long-term employment. It is an industry that young people should be excited to become involved with Moreover, waste has increasingly acquired value as a resource, because of which there is a wide requirement for strategic and commercial thinking in developing and developed nations. Further, there is a general recognition that the available skills base is unlikely to keep pace with the expected speed of transformation, and that the sector has to respond by planning for the impending skills gap. Furthermore, labour force in India is rapidly increasing and as per the Labour Bureau Report 2014, the present skilled workforce in India is only 2 percent, which is much lower when compared to the developing nations. As per the report, the number of persons aged 15 years who have received or be receiving skills is merely 6.8 percent. Therefore, participation from citizen bodies and skill development social enterprises in collaboration


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