Risk Management
Energy Risk. Identified, Quantified, Managed.
Strella provides specialist risk management advisory across the energy sector — helping developers, investors, lenders, and operators identify, assess, and mitigate the commercial, technical, and political risks that determine whether energy projects succeed or fail.
Risk Is Inherent in Energy. Today's Global Markets Increase the Ways in Which it Manifests Itself.
Every energy project carries risk — from the technical performance of assets and the reliability of fuel supply, to the stability of the regulatory environment and the creditworthiness of counterparties. The difference between projects that reach financial close and those that don't is often the quality of risk identification and the robustness of the mitigation strategy.
Strella's risk management practice brings together commercial, technical, and geopolitical expertise to provide a rigorous, integrated view of project and portfolio risk. We work with developers at the early stages of project development, with lenders and investors conducting due diligence, and with operators managing risk across existing asset portfolios.
Commercial RiskCommercial Risk
Commercial & Contractual Risk Advisory
Commercial risk — from offtake and fuel supply exposure to counterparty credit and contract structure — is often the most consequential risk category for energy projects. Strella advises on the identification, allocation, and mitigation of commercial risk across the full project lifecycle, from early-stage structuring through to contract negotiation and financial close.
- Offtake risk assessment and PPA structuring
- Fuel supply and commodity price risk analysis
- Counterparty credit and default risk assessment
- Contract risk review and gap analysis
- Force majeure and change-in-law exposure
- Revenue risk modelling and sensitivity analysis
- Commercial risk register development
Technical RiskTechnical Risk
Technical & Operational Risk Assessment
Technical risk encompasses everything from construction delay and cost overrun to equipment performance, operational reliability, and asset integrity. Strella provides independent technical risk assessment for developers, lenders, and investors — evaluating the engineering assumptions underpinning a project and identifying the technical risks that could affect delivery and long-term performance.
- Independent technical due diligence for lenders
- Construction risk and delay assessment
- Equipment performance and reliability analysis
- O&M risk and availability modelling
- Asset integrity and lifecycle risk assessment
- EPC contract risk review
- Technical risk register and mitigation planning
Political & Regulatory RiskPolitical & Regulatory Risk
Political, Regulatory & Country Risk
Energy projects are long-lived, capital-intensive, and deeply embedded in the regulatory and political environment of the countries where they operate. Strella advises on political and regulatory risk across emerging and developed markets — assessing the stability of the investment environment, the risk of adverse regulatory change, and the strategies available to manage sovereign and country risk.
- Country and sovereign risk assessment
- Regulatory stability and change-in-law analysis
- Permitting and consent risk evaluation
- Political risk insurance advisory
- Expropriation and nationalisation risk assessment
- Dispute resolution and arbitration strategy
- Stakeholder and community risk management
Our Framework
A Structured Approach to Energy Risk
Risk Identification
Systematic identification of all material risks across commercial, technical, regulatory, and environmental dimensions — drawing on sector expertise and project-specific analysis.
Risk Quantification
Rigorous quantification of identified risks — probability and impact assessment, scenario modelling, and sensitivity analysis to establish the financial materiality of each risk.
Risk Allocation
Advisory on optimal risk allocation across project parties — developers, contractors, offtakers, lenders, and insurers — to achieve a bankable, commercially sustainable structure.
Mitigation & Monitoring
Development of targeted mitigation strategies for residual risks, and ongoing monitoring frameworks to track risk exposure across the project lifecycle.
When Clients Engage Us
Risk Advisory Across the Project Lifecycle
Early-Stage Development
Identifying and structuring around key risks before they become embedded in project design — maximising optionality and minimising the cost of mitigation.
Lender Due Diligence
Independent technical and commercial risk assessment for project finance lenders — providing the rigorous, objective analysis required to support credit decisions.
Investor Due Diligence
Risk assessment for equity investors and infrastructure funds evaluating new investments or portfolio acquisitions — from greenfield development to operating asset M&A.
Operational Risk Management
Ongoing risk management advisory for operating assets — identifying emerging risks, reviewing risk registers, and advising on mitigation as the operating environment evolves.
Dispute & Claim Support
Technical and commercial expert support for energy project disputes — construction claims, performance shortfall disputes, and force majeure events.
Portfolio Risk Review
Holistic risk review across multi-asset energy portfolios — identifying concentration risk, cross-portfolio exposures, and opportunities to optimise the overall risk profile.
Managing Risk on an Energy Project?
Whether you are a developer structuring a new project, a lender conducting due diligence, or an operator reviewing your risk exposure, Strella brings the expertise to help you manage what matters.