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Risk management method for small photovoltaic plants

Author

Listed:
  • Kirova Milena

    (University of Ruse “Angel Kanchev”, Ruse, Bulgaria)

  • Velikova Preslava

    () (University of Ruse “Angel Kanchev”, Ruse, Bulgaria)

Abstract

Risk management is necessary for achieving the goals of the organization. There are many methods, approaches, and instruments in the literature concerning risk management. However, these are often highly specialized and transferring them to a different field can prove difficult. Therefore, managers often face situations where they have no tools to use for risk management. This is the case with small photovoltaic plants (according to a definition by the Bulgarian State Energy and Water Regulatory Commission small applies to systems with a total installed power of 200 kWp). There are some good practices in the energy field for minimizing risks, but they offer only partial risk prevention and are not sufficient. Therefore a new risk management method needs to be introduced. Small photovoltaic plants offer plenty of advantages in comparison to the other renewable energy sources which makes risk management in their case more important. There is no classification of risks for the exploitation of small photovoltaic systems in the available literature as well as to what degree the damages from those risks could spread. This makes risk analysis and evaluation necessary for obtaining information which could aid taking decisions for improving risk management. The owner of the invested capital takes a decision regarding the degree of acceptable risk for his organization and it must be protected depending on the goals set. Investors in small photovoltaic systems need to decide to what degree the existing risks can influence the goals previously set, the payback of the investment, and what is the acceptable level of damages for the investor. The purpose of this work is to present a risk management method, which currently does not exist in the Bulgaria, so that the risks and the damages that could occur during the exploitation of small photovoltaic plants could be identified and the investment in such technology – justified.

Suggested Citation

  • Kirova Milena & Velikova Preslava, 2016. "Risk management method for small photovoltaic plants," Management & Marketing, Sciendo, vol. 11(3), pages 498-512, September.
  • Handle: RePEc:vrs:manmar:v:11:y:2016:i:3:p:498-512:n:2
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