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Major regulatory risks and mitigation

                                 approaches





                              Risk                   Description                                              Mitigation strategy

                                                                                                              • Explore letters of cooperation from local and state
                                                                                                                gov’ts supporting project
                                                     • Government changes laws or policies                    • Consider PPP structure (not ownership but similar
                              Change in Law             impacting the industry (or a particular                 ways of government buy-in); Register your
                              Risk                      developer/project) in a materially adverse              business with the IPC

                                                        way.                                                  • Ensure strong community relations, so they can
                                                                                                                become advocates for project with local
                                                                                                                government if necessary
                                                     • Permit not approved or approval process                • Do not begin construction until permit is issued
                                                        prolonged significantly, possibility of it            • Build flexibility into financing and development plan
                              Approval delayed
                                                        affecting other financing, regulatory, or             • Explore AMDA advocacy
                                                        development timelines                                 • Advocate for clarity on government processes
                                                     • Main grid expands to mini grid customer
                                                        households, supplying electricity at a lower  • Engage lawyers and gov’t liaisons to work with
                              Grid arrival              cost without interconnection to existing                government on compensation process outlined in

                              without                   mini grid distribution network or                       mini-grid regulation;
                              compensation              compensation to developer                             • Pursue political risk insurance
                              (<100kW)               • Legislated compensation does not                       • For interconnected mini-grids, negotiate longer
                                                        sufficiently compensate developer for                   terms in tripartite agreements where possible
                                                        expected returns






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