Strategic business risk evaluation for sustainable energy investment and stakeholder engagement: A proposal for energy policy development in the Middle East through Khalifa funding and land subsidies
Gyanendra Singh Sisodia,
Einas Awad,
Heba Alkhoja and
Bruno S. Sergi
Business Strategy and the Environment, 2020, vol. 29, issue 6, 2789-2802
Abstract:
This article projects business risk through deferent industrial scenarios in concentrated solar investments in the United Arab Emirates (UAE). Nationwide, the government seeks a sustainable solution through energy policy development and engagement of the stakeholders for clean energy generation at wider level in the long run. Support has been extended through various support schemes. In the current study, Monte Carlo simulations and net present value (NPV) risk are used to analyse the return on investment. A 5 MW concave solar panel project is evaluated. We have assessed the impact of local factors on profits through NPV. The study proposes that a higher NPV is expected if the concave solar panel project is financed 50% by Khalifa funding. The study also proposes a robust policy and highlights the opportunity of business profitability if the government subsidises land leasing with respect to each scenario. Additionally, the study also proposes a policy to maintain the interests of investors in the UAE.
Date: 2020
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https://doi.org/10.1002/bse.2543
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Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:29:y:2020:i:6:p:2789-2802
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