Risk management

Greentech considers risk management an integral part of the business operations and crucial to generating and maintaining the value of the Company.
Through geographical diversification with operations in 5 countries and technological diversification within different areas, Greentech seeks to manage the overall and particular risks in order to reduce the uncertainty related to any potential issue in a specific market or business area.
Despite continuous focus on risk management, the Company’s activities will, inevitably, always be exposed to a range of different risks. Identifying, monitoring and mitigating these risks is, however, a continuous focus of the Management.
Below, the significant risk categories of Greentech’s businesses are presented. The list is not exhaustive and categories are not listed in order of priority:
  • Development risks related to issues such as delays in obtaining permits, local collaboration partners, limitations concerning number of sites, weather conditions at project site
  • Risk of electricity price which is in some cases covered by the variation of the feed-in-tariff (Green Certificates)
  • Construction risks related to issues such as delivery conditions, financing and additional costs
  • Operating risks related to issues such as the climate, operating risks relating to the renewable energy projects, credit risk related to the off-taker, political risks, variations in settlement prices
  • Acquisition risks related to issues such as access to and possibility of information verification, regulatory requirements, possibility of transfer of rights/financing, determination of acquisition price and price structure, expenses incurred for acquisition activities
  • General risks related to issues such as intellectual capital, interest rate risks, currency risks, environmental risks and insurance
  • General risk related to the regulatory uncertainty of the Renewable Energy Sector
For a detailed disclosure on these various risks, please refer to the Company’s latest Annual Report (Note 3)