Risk Management For Energy Efficiency Projects In Developing Countries

The present paper addresses risk management fundamentals for energy efficiency (EE) projects in developing countries. Four problems are often identified as the culprits for failing to harvest such projects: 1) lack of a rational and feasible approach to finance these projects; 2) lack of a rational internal management approach in the enterprise to package these projects in such a manner that they can be identified and implemented while the "plant is running"; 3) the high perceived risk of these projects; and 4) the fact that management is often simply unaware of the existence of EE projects of value. This paper is primarily focused on the third of these failure factors.