Risk Analysis Methods for Small Hydro Power Plants in Creating Insurance Policy

Abstract

Small Hydro Power Plants provide more diversity in terms of financing projects, location selection, ownership, its applications as well as insurance methods, comparing to the Conventional Hydro Power Plants. Electricity produced by small hydro power plants could be used to improve energy efficiency of different production facilities, domestic and public lighting and other applications. However, those energy objects are exposed to the variety of risks that should be taken into consideration in different ph ases of objects’ construction, operation and maintenance. Understanding of those risks is crucial for undertaking of different techno-economic analysis, as well as establishing of the insurance policy for those power plants. The approaches used to create insurance policy for Small Hydro Power Plants in certain countries depend of the technology applied and development level of the country and will be provided in this paper.