Monitoring and managing operational risks of small and medium hydropower projects in Vietnam

Abstract

There are many risks in the operation phase of hydropower projects, especially in small and medium-sized hydropower projects. The risk impact on the small and medium hydropower projects due to natural conditions is often great since most of them are built in mountainous areas with complex topography, geology, and hydrology. In project operation management, these projects are easily affected by risk factors in terms of policy, social environment, economy, finance, and capacity of stakeholders. The article deals with the identification, analysis, and assessment of risks during the operation of small and medium hydropower plants, and then proposes some solutions to control them. The combination of surveying methods, interviewing experts, and statistical mathematics is employed to identify 11 main risks for invested small and medium hydropower projects. The research has also proposed some specific solutions to avoid, minimize and control risks. In light of this, the current work serves as a basis to help stakeholders be proactive in responding and providing risk management solutions to minimize losses and operating and repair costs for investors.