KEY RISKS TO LOOK OUT FOR IN THE POWER SECTOR IN 2025

October 31, 2024Risk Mini

power.jpg

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.


Find us

35, Glover Road, Ikoyi, Lagos Nigeria.
info@hpierson.com
+234-812-902-3329, +234-802-056-5056, +234-083-263-3999, +234-806-597-4605