Risks in the energy sector: the analysis of management practices in the electricity market

Abstract

Energy security is today one of the most discussed event in international economic relations. It is being actively discussed by all governments and leading international organizations. There doesn’t exist any universal definition of energy sector. In addition to the lack of such a universal definition, analysis of decisions in this area, one notices the lack of attention to such phenomena as risks in the energy sector, especially in the management of investment projects in the industry. For most industrial countries, energy insecurity means import dependency and aging infrastructure, while many emerging economies have additional vulnerabilities such as insufficient capacity, high energy intensity, and rapid demand growth. In many low-income countries, multiple vulnerabilities overlap, making them especially insecure.