In-Depth Analysis of Risks and Their Impacts on Solar Power Project Development: Public and Private Contractors’ Perspective

Solar power is sustainable and one of the mainstream resources for meeting power demands. It has emerged as the most adaptable solution to energy access and security concerns. Despite offering modularity and low cost of generation advantages, the projects suffer overruns and often fail to deliver the desired performances. However, limited studies are available on investigating solar power project risks and their impact on project performances, primarily based on empirical evidence. Moreover, such studies rarely analyze the underlying contractor’s approach in addressing them. Therefore, through case studies in India, this study empirically attempts to identify the potential risk issues and associated impacts responsible for impaired solar project performance. The study also explores the contractors’ approach toward their management concerning their enterprise listing, i.e., private and public. The study outlines the 16 key risk factors, including error in project estimations, incorrect site assessment, delays in statutory and regulatory compliances, change in management, ineffective communication and control, improper distribution of works, insufficient workforce, and lack of quality control mechanism. Also, the study evaluates their impact on project performance, such as reworks, cost and time variance, imposition of liquidated damages, loss of revenue, and disputes and claims. Moreover, the study suggests mitigation measures, i.e., proactive and inclusive planning, a thorough study of project parameters and conditions, utilizing IT for reducing response time, training and development, and continuous monitoring and control, that could have minimized the impact of risk in the cases. Further, the study reveals that irrespective of the contractors’ listing type, the approach toward risk management remains casual, leading to derailed project outcomes. Overall, this study fills a critical gap in the body of knowledge on solar power project development by identifying risk factors that cause impaired performances and the contractors’ perspectives based on empirical evidence from India.