Navigating Investment Risks in the Renewable Energy Market of Developing Countries

Abstract

The chapter deals with investment risks in the energy markets. Two important aspects are compared: efficiency and effectiveness. Efficiency is related to the optimal use of resources, both financial and human, to achieve goals. Efficiency is assessed by the achievement of the final goals and expected results. Investment risk management in the energy sector of developing countries requires a balance between efficiency and effectiveness. The chapter gives unexpected results in the management of investment risks in the renewable energy market in developing countries, which may be interesting and meaningful for discussion and further research. An accurate assessment of investment risks in alternative energy and fossil energy depends on specific conditions, regional characteristics, and other factors. However, in the long term, there are arguments in favor of the fact that investment risks in alternative energy may be higher than the risks of investments in fossil energy.