Genesis Morocco: Solar Plants Construction and Delivery, Assessing the Risks

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Genesis Morocco

Project Genesis is a strategic sustainable development framework for Morocco to translate from being a net importer of energy and a country facing water shortage issues, into the number one producer both of clean renewable energy and water in the region.

Wednesday, November 2, 2011    <<Home

Solar Plants Construction and Delivery, Assessing the Risks

As for any project there are constraints and risks, the constraints can be assessed and reduced previous to construction start, as for the risks they can be mitigated but not simply brushed aside if and when they materialize. Risk assessment is key to plan for successful mitigation scenarios, and that can make or brake the whole undertaking. 

Here is a comprehensive list of risk factors pertaining to constructing and operating a solar plant established by U.S firm First Solar in one of its investor statements. They pretty much apply here in Morocco as in any other place. 
  1. Inability to complete construction of, or capital improvements of solar plant
  2. Inability to obtain the required regulatory approvals and permits for construction and operation 
  3. Inability to obtain the supplies necessary for the construction, operation, and maintenance
  4. Inability to hire and retain skilled labor for the construction, operation and maintenance
  5. Changes in laws, regulations, governmental policies and regulatory actions regarding the energy industry and environmental matters
  6. Inability of constructor or its affiliates to access capital markets or maintain their current credit ratings
  7. Failure to generate the expected amount of electric generation
  8. General economic conditions
  9. Hazards customary to the operation and maintenance of power generation facilities, including unanticipated outages
  10. Unusual or adverse weather conditions, including natural disasters
  11. Transmissions constraints or other factors limiting constructor's ability to deliver energy from its power generation facilities
  12. Volatility in the price of energy
  13. Failure of operator's customers to perform under contracts
  14. Increased competition in the power industry
  15. Changes in the wholesale power markets
  16. Costs and other effects of legal and administrative proceedings
  17. Terrorism or other catastrophic events