Risk Management Cool Head Hydropower Technology Projects

Construction of small hydropower stations in China has made great achievements, and they played major roles in the local development of the national economy and improving people’s living standards. However, a considerable part of the hydropower station have some problems during they are running, such as insufficient output, abandoned a large amount of water, less application of new technologies, management methods are backward, low level of automation and so on. These problems impact of hydropower safety as well as the overall economic benefits. In order to respond to national energy strategy and improve power station efficiency, the technological transformation of the hydropower station is widely expanded. Due to hydropower technological transformation project is a system engineering which is long duration, large investment, and covers a wide range, full of a variety of risks and uncertainties occur in the process of project. Risks occur will bring the project a huge loss. So the study of technical project risk management, risk response, supervision and control is of great significance.Hydropower technological transformation project risk is an objective reality and has uncertainty, which in the implementation of the project may bring many unknown loss. However, prior to the start of the project implementation, according to the theories and methods of risk management, we can comprehensive cognitive hydropower technological transformation project risk and develop reasonable preventive measures timely. Giving guidance in the project implementation of hydropower technological transformation, we can avoid and prevent the occurrence of risk events. To take effective preventive measures to solve risks which may appear or existing, will be able to defuse the risks or minimize the losses caused by the risks, thus ensuring the hydropower technological transformation project’s smooth implementation and completion. The entire risk management process is:Firstly, identify the project risk, identifying uncertainties may exist and listing a list of risk; Secondly, implementation of the analysis of risk to determine the nature of project risks; Thirdly, to take risk assessment to get the variety of risk weights and ratings; Fourthly, to take the risk response measures to control and prevention of risks; Finally, to take risk monitoring to monitor risk management procedures of the above. This article is based on the theory of project management, risk assessment and control and combines the characteristics of the Liangtou hydropower technological transformation project to identify the specific and various types of risk of hydropower technological transformation project. On this basis, using the analytic hierarchy process and fuzzy evaluation method to take the risk assessment of political risk, market risk, technical risk, schedule risk, management risk, security risk and environmental risk which are indentified. Targeted risk response measures and monitoring measures for technological transformation project, and provide a theoretical basis and practical guidance for policy makers and managers of the Liangtou hydropower technological transformation project.