Engaging in new and more efficient ways of working within their current energy markets or starting work in new energy markets entirely often requires actors to take risks. This is typically significantly more difficult for marginalised actors as they often have access to only very limited resources, and either cannot, or will not, risk investing. This effectively excluded them from new income opportunities, which could help lift them out of their marginalised status. The following are some of the most important risks that marginalised actors typically face in a range of energy market chains:
As the facilitation processes outlined in each step of the roadmap takes place, including participation, engagement, collaboration, strategic planning and coordinated action, the perceived and real risks for the market actor’s change.
To try and help each marginalised actor overcome their inherent aversion to risk the market facilitator can carry out a risk analysis. This also helps the facilitators provide support as required, including designing targeted subsidies to help marginalised actors take on increasing levels of risks in a controlled way. The market facilitators can use the template in Annex 2 to carry out a risk analysis, to identify the following issues:
As well as systematically identifying each of the main risks impacting each marginalised actor, it is also useful to assess the level of each risk, from low, medium to high. In addition, it is important to identify any activities for mitigating each risk – these can then start to be addressed by the marginalised actors themselves, or can be start to be overcome through the rest of the facilitation process.