Wind‑energy projects depend heavily on supportive regulatory frameworks. Sudden changes in feed‑in tariffs, grid‑access rules or permitting processes can disrupt project economics. Investors should monitor government policy direction and ensure contracts include stabilization clauses that protect against adverse legislative changes.
Currency and inflation risks are also critical: turbine procurement and financing may be in euros or dollars while revenues are denominated in local currency. Hedging strategies or local‑currency debt can mitigate exchange‑rate volatility and preserve returns. Finally, political stability underpins the enforceability of contracts and the integrity of the permitting process.
Assessing country risk—including potential for regime change, corruption or geopolitical tensions—helps investors price uncertainty and decide on appropriate risk premiums.
For more insights on these macro‑level risks, visit clarion.energy.