Page 141 - UUBO Deal Academy 2020 - Materials

Major operational risks and mitigation

approaches

Risk Description Mitigation strategy

• Demographic data
Inaccurate • Pre-construction mitigation is to conduct own site surveys
demographic (households, electrification, • Use standardized templates for site survey
incomes, etc.) available not
data • If demand is low, implement demand stimulation programs
accurate

• Non-payment resulting from a • Include force majeure clauses in contracts outlining risks
significant event such as civil • Explore insurance coverage options if not cost-prohibitive
Mass non-
payment unrest or acts of terrorism, • Community engagement to understand cause of non-payment
operational change or • Employ preventive methods such as customer education on
community attitude implications of default to drive behavioral change

• Upfront customer/community engagement
• Community decides to no • Ensure total cost of power (tariff) is lower than comparable
Consumption longer use the mini grid due options
decline to better options becoming
available • Evaluate options for repurposing equipment or selling on the
secondary market

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