Risks In Hydropower Development From Perspectives Of Stakeholders

The hydropower is one of the most efficient and environmentally friendly modes used in generation of energy especially when compared with other modes such as thermal or other means disposing high amount of carbon emissions into the air.There is an increasing demand for hydropower development in developing countries.However,little research has been conducted to systematically investigate the overall aspects of hydropower project risk management.With support of the data collected from the hydropower industry,this study reveals that:(1)The top five important risks by overall participants were “safety”,“incompetence of subcontractors”,“quality of work”,“premature failure of facilities”,and “delay”.To understand the perceptions of clients,contractors,superintendents and designers,each group's perceptions were studied specifically.(2)The critical risks considered by clients are: project migration,incompetence of subcontractors,delay,inadequate or incorrect design,safety,premature failure of facilities,and ecological and environmental impacts.(3)The key risks for contractors are: quality of works,cost control,safety,and incapability of making profits,poor financial situation,reputation,claims and disputes,insufficient technology.(4)The top five important risks for designers are: safety,inaccurate marketing prediction for future growth,inadequate core capabilities of organization,inappropriate organizational response to changing environment,and lack of motivation for staff.(5)The most important risks for superintendents are: safety,quality of work,premature failure of facilities,lack of motivation for staff,and inadequate core capabilities of organization.(6)The overall rating of the application of risk management techniques is 3.69,which is not high,suggesting that there is much room for improvement in using different risk management approaches.(7)Survey results and case studies of the Three Gorges Project and the Kishanganga hydroelectric power project demonstrate practical strategies:1)Adequate investment in safety management such as treatment of geological and natural hazards,safety education,and site protection are essential.2)Appropriate dealing with project migration by considering local communities,culture,livelihood,and natural environment.3)As the risks on safety,quality of work,and incompetence of subcontractors are relevant to workers,contractors have a task to manage a large number of human resources by improving the technical skills and incomes of workers.4)Partnering strategy is necessary to be used in improving risk management of hydropower development.This study reveals the key risks of hydropower development from perspectives of clients,contractors,designers,and superintendents;and reports the status of organizational risk management of hydropower development participants.Accordingly,this study proposes practical strategies to improve risk management of hydropower project stakeholders.