KEY RISKS TO LOOK OUT FOR IN THE POWER SECTOR IN 2025
October 31, 2024 Risk Mini
HIGH-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Transmission and Distribution (T&D) Infrastructure Risks: Inadequate and aging T&D infrastructure, leading to power outages and revenue loss.
– Mitigant: Invest in T&D infrastructure upgrades, conduct regular maintenance, and enhance grid management.
2. Gas Supply Risks: Insufficient gas supply to power plants, impacting generation capacity.
– Mitigant: Develop gas supply agreements, invest in gas infrastructure, and diversify fuel sources.
3. Cybersecurity Threats: Increased risk of cyberattacks on power infrastructure, potentially disrupting operations.
– Mitigant: Implement advanced cybersecurity measures, conduct regular vulnerability assessments, and enhance employee training.
4. Regulatory Uncertainty: Uncertainty surrounding regulatory frameworks, licensing, and tariffs.
– Mitigant: Engage with government officials and regulatory bodies, conduct thorough risk assessments, and develop contingency plans.
MODERATE-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Renewable Energy Integration Risks: Challenges integrating renewable energy sources into the grid.
– Mitigant: Develop renewable energy integration plans, invest in grid management systems, and enhance forecasting capabilities.
2. Energy Theft and Vandalism: Energy theft and vandalism, impacting revenue and grid reliability.
– Mitigant: Implement advanced metering infrastructure, enhance security measures, and engage with law enforcement.
3. Climate Change Risks: Climate change impacts on power generation and transmission infrastructure.
– Mitigant: Develop climate resilience plans, invest in climate-resilient infrastructure, and enhance emergency preparedness.
4. Local Content Requirements: Increasing local content requirements, potentially impacting procurement and operations.
– Mitigant: Develop local content strategies, engage with local stakeholders, and enhance supplier development programs.
LOW-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Electric Vehicle (EV) Adoption Risks: Risks associated with EV adoption, including charging infrastructure and grid impact.
– Mitigant: Develop EV adoption plans, invest in charging infrastructure, and enhance grid management.
2. Artificial Intelligence (AI) and Machine Learning (ML) Risks: Risks associated with AI and ML adoption, including data bias and system failures.
– Mitigant: Implement robust AI and ML governance frameworks, conduct regular system audits, and enhance employee training.
SPECIFIC RISKS (Potential Impact: High, Likelihood: High)
1. Security Threats: Security threats from militant groups, kidnappings, and banditry.
– Mitigant: Enhance security measures, engage with government officials, and conduct regular risk assessments.
2. Economic Instability: Economic instability, impacting customer spending and revenue.
– Mitigant: Develop contingency plans, engage with government officials, and enhance financial management.
3. Infrastructure Challenges: Inadequate infrastructure, including transportation and logistics.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.