Developing Risk Mitigation Model in Renewable Power Projects: A PLS-SEM Approach

High investment, long-term ventures, and involvement of multidisciplinary interactions make renewable power projects unique propositions regarding risks and their management. However, risk issues and mitigation measures concerning the enterprises’ sustainability and the precise analysis of their underlying structure and influences in the context of renewable resources were seldom reported. The present study fills this gap by identifying 34 risk issues and 13 mitigation strategies from enterprises’ annual reports, literature, and expert discussions. A total of 101 responses were collected using a questionnaire survey and analyzed through exploratory factor analysis (EFA). It resulted in 8 risks and 3 mitigation factors. A hypothesized model was developed and tested using partial least square structural equation modeling (PLS-SEM). The analysis revealed the mitigation measures’ positive and strong influence in controlling risk issues. The measures identified are policy framework, proactive planning and process development; digitization, standardization, and creating databases; and improved stakeholder interaction and liaison. This study adds value to the existing body of knowledge by exploring the mitigation measures, their underlying structure, and their precise influence in containing the risk impacts toward renewable energy sectors’ sustainable development through empirical evidence. The risk professionals and enterprises can adopt the results to modify/adopt appropriate approaches to address risk issues and enhance sustainability.