Published 13 November 2023
Based on a recent geothermal power production arbitration where I was involved, it is my contention that due to the upfront investment risks specific to renewable power plants, 'off-the-rack' templates and assumptions used in gauging a power plant's risk profile, such as those typical to fossil fuel based power, should not be relied upon. In this paper I intend to highlight the pitfalls of applying fossil-fuel frameworks such as feasibility studies, optimistic turbine input values and unenforceable production guarantees etc., to renewable power plants. In support of this theory, I give examples of various post-feasibility study factors that have a comparatively heightened effect on renewable power production. This includes, but is not limited to, fuel source variability, ambient temperature, internal consumption, plant utilization rates and government pricing legislation.