China and Pakistan have collaborated to start the project China Pakistan Economic Corridor (CPEC). Major part of this project is the formation of different special economic zones (SEZs) to boost industrial growth. Additional energy plants would be required once these zones are set up. As the world is shifting its trend towards renewable energy, therefore major focus will be on risks related to renewable energy. Literature was studied, different risk factors were identified and risk solutions/measures were also identified. In the second phase, three renewable energy technologies. The main method used for research was Multi Criteria Decision Making (MCDM) through the Analytic Hierarchy Process (AHP) tool. Expert Choice software was used based on AHP structural concept. Pairwise questionnaire was formed while data were collected through three groups consisting of government officials, company representatives and officials and end users. The high risks were identified as a result according to each group and the risk solutions. The results provided priority of risks which were most important according to each group. The solutions were also ranked as identified by each group. The results obtained from second phase indicated which renewable technology was most affected by each of risk factor. This risk assessment can provide overview to government and investors about different risks. The evaluation of results and taking necessary steps can reduce these risks and provide better business and working conditions for this industry.
risk assessment, renewable energy, Multi Criteria Decision Making, Analytic Hierarchy Process
Agrawal, A. (2012), Risk Mitigation Strategies for Renewable Energy Project Financing , Strategic Planning for Energy and the Environment, 32(2), pp 9-20
Aven, T. (2012). The Risk Concept-Historical and Recent Development Trends. Reliability Engineering and System Safety, 99, pp 33-44.
Badalpur, M., Hafezalkotob, A. (2015), Methodology based on MCDM for risk management in EPC projects: A Case Study of LPG Storage Tanks Construction, Journal of Industrial and Systems Engineering 8, pp 1-23
Bature, A., Melville, L., Rahman, K. M., Akhtar, J., & Aulak, P. (2018). An Investigation into the Effects of Risks and Risk Management of Bioenergy Projects. International Conference on Renewable Energy (ICREN), 61
Beltrán, P. A., González F. C., Ferrando, J. P., Rubio, A. P. (2014), An AHP (analytic hierarchy process)/ANP (analytic network process)-based multicriteria decision approach for the selection of solar-thermal power plant investment projects. Energy, pp 1–17
Bhutto, A. W., Bazmi, A. A., & Zahedi, G. (2013). Greener energy: Issues and challenges for Pakistan – Wind power prospective. Renewable and Sustainable Energy Reviews, 20, pp 519-538.
Chebotareva, G., Strielkowski, W., Streimikiene, D., (2020) Risk assessment in renewable energy projects: A case of Russia, Journal of Cleaner Production, 269
Cheng et al. (2002), Analytic hierarchy process (AHP): A defective tool when used improperly, Measuring Business Excellence, 6(4), pp 33-37
Doloi, H. (2008), Application of AHP in improving construction productivity from a management perspective, Construction Management and Economics, 26:8, pp 841-854
Emovon, I., Oghenenyerovwho, O. S., (2020), Application of MCDM method in material selection for optimal design: A review, Results in Materials, 7 European Journal of Operational Research, 48, pp 9-26,
Franklin, T. (2019). Risk Management in renewable energy and sustainability in India.
Frisari, G., Micari, V. (2015), Risk Mitigation Instruments for Renewable Energy in Developing Countries: A case study of hydro power in Africa, Climate Policy Initiative
Gatzert, N., & Kosub, T. (2016). Determinants of Policy Risks of Renewable Energy Investments. Working Paper, Department of Insurance Economics and Risk Management
Gatzert, N., & Kosub, T. (2016). Determinants of Policy Risks of Renewable Energy Investments. Working Paper, Department of Insurance Economics and Risk Management.
Gatzert, N., & Kosub, T. (2016). Risks and risk management of renewable energy projects: The case of onshore and offshore wind parks. Renewable and Sustainable Energy Reviews, 60, pp 982-998
Guerrero-Liquet, G. C., Sánchez-Lozano, J. M., García-Cascales, M. S., Lamata, M. T., & Verdegay, J. L. (2016). Decision-Making for Risk Management in Sustainable Renewable Energy Facilities, A Case Study in the Dominican Republic. Sustainability, 8(5)
Ioannou, A., Angus, A., & Brennan, F., (2017). Risk-based methods for sustainable energy system planning: A review. Renewable and Sustainable Energy Reviews, 74, pp 602-615
Jin, X., Zhang, Z., Shi, X., Ju,W. (2014), A review on wind power industry and corresponding insurance market in China: Current status and challenges, Renewable and Sustainable Energy Reviews, 38, pp 1069-1082
Jinrong, H. & Enyi, Z., (2011). Engineering risk management planning in energy performance contracting in China. Systems Engineering Procedia, 1, pp 195-205
Kamran, M., Fazal, M. R., & Mudassar, M. (2020). Towards empowerment of the renewable energy sector in Pakistan for sustainable energy evolution: SWOT analysis. Renewable Energy, 146 (31), pp 543–558.
Kreft, S., & Eckstein, D. (2014). Global climate risk index 2014. Who suffers most from extreme weather events? Think tank & research.
Lee, E. K., Ha, S. and Kim, S. K. (2001), Supplier selection and management system considering relationships in supply chain management, IEEE Transactions on Engineering Management, 47(4), pp 307-318
Liebreich, M., (2005), Financing RE: Risk management in financing renewable energy projects. Refocus, 6(4), pp 18–20
Linkov, I., Varghese, A., Jamil, S. (2004), Multi-criteria Decision Analysis: A Framework for Structuring Remedial Decisions at Contaminated Sites. Comparative Risk Assessment and Environmental Decision Making, pp 15-54
Marle, F., Gidel. T., (2012), A Multi-Criteria Decision-Making Process for Project Risk Management Method Selection, International Journal of Multicriteria Decision Making, 2 (2), pp.189-223
Michelez, J., Rossi, N., Blazquez, R., Martin, J. M., Mera, E., Christensen, D., Stevens, G. (2011). Risk quantification and risk management in renewable energy projects. IEA Renewable Energy Technology Deployment (RETD)
Mirkheshti, S. A., & Feshari, M. (2017). Qualitative and Quantitative Analysis of Off-Shore Wind Energy Project’s Risks. Journal of Energy, 2017
Noothout, P., Jager, D. d., Tesnière, L., Rooijen, S. v., & Karypidis, N. (2016). The impact of risks in renewable energy investments and the role of smart policies. DIA-CORE Final Report
Opricovic, S. and Tzeng, G.H. (2004), Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS, European Journal of Operational Research, 156, pp 445-455.
Prostean, G., Badea A., Vasarb, C., Octavian, P. (2014), Risk variables in wind power supply chain, Procedia – Social and Behavioral Sciences, 124, pp 124-132.
Rafique, M. M., Rehman, S., Alhems, L. M. (2020), Assessment of solar energy potential and its deployment for cleaner production in Pakistan. Journal of Mechanical Science and Technology 34 (8)
Ragwitz, M., Held, A., Resch, G., Faber, T., Haas, R., Huber, C., Heyder, B. (2007). Assessment and optimization of renewable energy support schemes in the European electricity market – OPTRES. OPTRES Final Report – European Commission
Rauf, O., Wang, S., Yuan, P., & Tan, J. (2015). An overview of energy status and development in Pakistan. Renewable and Sustainable Energy Reviews, 48 (C), pp 892-931
Rehman, A., Deyuan, Z. (2018). Pakistan’s energy scenario: a forecast of commercial energy consumption and supply from different sources through 2030. Energ Sustain Soc 8, 26 (2018). https://doi.org/10.1186/s13705-018-0167-y
Saaty, T. L. (1980), The analytic hierarchy process: planning, priority setting, resource allocation, McGraw-Hill, New York
Saaty, T. L., (1990), How to Make a Decision: The analytic hierarchy process,
Saaty, T. L., (2014), Analytic Hierarchy Process, Statistic Reference Online
Santoyo, C., E., & Azapagic, A. (2014). Sustainability assessment of energy systems: integrating environmental, economic and social aspects. Journal of Cleaner Production, 80, pp 119-138
Segal, S. (2011). Corporate Value of Enterprise Risk Management: The Next Step in Business Management. John Wiley & Sons (1).
Shah, R., Hussain, S., & Rasheed, A. (2020) China Pakistan Economic Corridor: Security Challenges and Sequence of Processes of Domestic Resistance. European Academic Research, 7 (10)
Shapiro, A. F., & Koissi, M.-C. (2015). Risk Assessment Applications of Fuzzy Logic. Casualty Actuarial Society, Canadian Institute of Actuaries, Society of Actuaries.
Sheikh, S. M., Zafar, M., Nawaz, S. and Nawaz, A. (2019). CPEC Investment Opportunities and Challenges in Pakistan. Journal of Accounting and Finance in Emerging Economies, 5 (1), pp 123-128
Soflaei, F., Shokouhian, M., Zhu, W., (2017). Socio-environmental sustainability in traditional courtyard houses of Iran and China. Renewable and Sustainable Energy Reviews, 69, pp 1147-1169
Solangi, Y. A., Tan, Q., Mirjat, N. H., & Ali, S. (2019). Evaluating the strategies for sustainable energy planning in Pakistan: An integrated SWOT-AHP and Fuzzy-TOPSIS approach. Sustainable Cities and Society: Journal of Cleaner Production. 236 (2)
Umer, M., Hussain, A., (2015), Micro Hydro Power: A source of Sustainable Energy
Waissbein, O., Glemarec, Y., Bayraktar, H., & Schmidt, T. S. (2013). De-risking Renewable Energy Investment. A Framework to Support Policy makers in Selecting Public Instruments to Promote Renewable Energy Investment in Developing Countries. New York: United Nations Development Program
Wing, L. C., & Jin, Z. (2015). Risk management methods applied to renewable and sustainable energy: A review. Journal of Electrical and Electronic Engineering, 3(1-1), pp 1-12.
Wu, Y. et al., (2019) Renewable energy investment risk assessment for nations along China’s Belt & Road Initiative: An ANP cloud model method, Energy.
Yazdani, M. and Pascale, Z. (2017), Flood risk assessment; A MCDM approach, 3rd International Conference on Decision Support Systems Technologies
Mustafa Zahid Baig. Department of Industrial Engineering, UET Taxila, Pakistan
Mirza Jahanzaib. Department of Industrial Engineering, UET Taxila, Pakistan
Cite this article:
Mustafa Zahid Baig & Mirza Jahanzaib (2022). Risk assessment of sustainable renewable energy resources on CPEC route. International Journal of Academe and Industry Research, 3(1), 1-25. https://doi.org/10.53378/352855
License:
This work is licensed under a Creative Commons Attribution (CC BY 4.0) International License.
