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Joint Management Committee in Renewable Energy Projects as a Tool for Efficient Risk Management and Coordination

Maddahinasab Mostapha

Energy Policy Studies

2022

No. 3 (11)

16--26

The Renewable Energy (RE)sector has been developed in some degree by government policies, but tools must be applied on a private-commercial scale for this sector to grow even more. These tools can be applied through the contractual relationships between the participants in a RE project. Many contracts are involved in a RE project that are not integrated in such a way that cooperation for improving risk management is possible. To reach that goal some contractual institutions are needed. One of them is the joint management committee (JMC). JMC has been used in the context of oil and gas contracts for a long time. And it has been one of the reasons that petroleum projects despite having high risks and long terms, thrive. In this research, the application of a similar structure for renewable energy has been studied and a format for that has been proposed. Hence, it has concluded that this structure can bring authorities, RE producers, and utilities together, and provide integrity to the contracts involved with a RE project.