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Risk management for energy efficiency projects in developing countries


This paper addresses risk management fundamentals for energy efficiency projects in developing countries, in particular industrial energy efficiency projects. It explores the nature of the risks presented by projects, and discusses best practices for energy efficiency project risk management with illustrative case studies. It also describes behavioral and other obstacles to effective risk management, together with methods for overcoming these obstacles. The role of energy service companies is also considered in identifying and managing projects and reducing risks. The paper concludes with recommendations for companies and those promoting energy efficiency schemes in emerging economies.

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