Financial risk management in renewable energy sector: Comparative analysis between the European Union and Turkey

Renewable energy is clean sources of energy that have a much lower environmental impact than conventional energy technologies. Renewable energy sector plays a very important role in the strategic energy planning process in any country. Most renewable energy investments are spent on materials and workmanship to build and maintain the facilities, rather than on costly energy imports. In this context, renewable energy provides innovative, cost effective renewable energy risk management and insurance programmes, helping this increasingly competitive industry meet the challenges it faces. At the same time, the speed of change in renewable energy technology requires specialists able to provide expert risk advice and insurance broking services. Meanwhile, focus on the renewable energy sector has never been higher, with governments around the world setting tough targets for the amount of energy provided by renewable sources. The main aim of this paper is to examine the financial risk management instruments that are evolving to meet the needs of the renewable energy sector in both the EU and Turkey. Finally, we provide the research findings according to our objective and discuss their managerial and theoretical implications related to renewable energy investments