Water Power Technologies Office Peer Review 

Marine and Hydrokinetics Program 

MHK Risk Management Framework 

Jochem Weber 

National Renewable Energy Laboratory 

Jochem.Weber@nrel.gov, 720.431.5464 

February 14-16, 2017 

Washington, D.C.

Principal Investigators: David Snowberg & Jochem Weber 

Insert photo of your choice in this space] 

NREL/PR-5000-68363

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC
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Project Overview 

MHK Risk Management Framework: The Development and 

application of a MHK Risk Management Framework can 

significantly reduce the risk of MHK at sea 

demonstrations and avoid the significant failures the 

MHK industry has been suffering. 

The Challenge: Reduce MHK technology development and 

demonstration risk to increase growth of the sector. 

During project: Achieve completeness of methodology. 

After project: Acceptance by MHK community. 

Partners: DOE subcontractors, DNV-GL (reviewed 

product), and many MHK stakeholders (provided 

feedback and input). 
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Technology 

Maturity

Deployment 

Barriers

Crosscutting 

Approaches

• Enable access to testing 

facilities that help 

accelerate the pace of 

technology development

• Improve resource 

characterization to 

optimize technologies, 

reduce deployment 

risks, and identify 

promising markets

• Exchange of data 

information and 

expertise

• Identify potential 

improvements to 

regulatory processes 

and requirements

• Support research 

focused on retiring or 

mitigating environmental 

risks and reducing costs

• Build awareness of 

MHK technologies

• Ensure MHK interests 

are considered in 

coastal and marine 

planning processes

• Evaluate deployment 

infrastructure needs and 

possible approaches to 

bridge gaps

• Support project 

demonstrations to 

reduce risk and build 

investor confidence

• Assess and 

communicate potential 

MHK market 

opportunities, including 

off-grid and non-electric

• Inform incentives and 

policy measures

• Develop, maintain, and 

communicate our 

national strategy

• Support development of 

standards 

• Expand MHK technical 

and research 

community

Program Strategic Priorities

• Test and demonstrate 

prototypes

• Develop cost-effective 

approaches for 

installation, grid 

integration, operations 

and maintenance

• Conduct R&D for 

innovative MHK 

systems & components

• Develop tools to 

optimize device and 

array performance and 

reliability

• Develop and apply 

quantitative metrics to 

advance MHK 

technologies

Market 

Development
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Technology 

Maturity

• Develop and apply 

quantitative metrics to 

advance MHK 

technologies

Project Strategic Alignment

The Impact

• Improvement of reliability

• Improvement of durability

• Improvement of availability

• De-risk technology development timelines 

• De-risk technology development cost 

• Application of the risk management tool has the potential to 

increase investor engagement and confidence.

• Consistent use of risk framework by all DOE project 

awardees will allow capturing the challenges and risks 

facing the industry today, and thus serves the U.S. portfolio 

decision makers to focus informed future decisions on highimpact areas in which to invest next. 

• Final Product: MHK technology development and 

demonstration risk management methodology and 

framework with risk management tool in form of a risk 

register; empowers users to effectively de-risk their projects

Market 

Development

• Support project 

demonstrations to reduce 

risk and build investor 

confidence
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Technical Approach

• Identify methodology of existing risk guidelines 

• Select relevant components 

• Compose consistent and complete risk management 

methodology, guidelines, and tool

• Provide example case for tool – Excel risk register with 

risk examples entered

• Obtain subject-matter expert to review the risk 

management methodology, tool, and overall project 

outcome

• Past failures serve as lessons learned and thus will 

reduce likelihood of future failure by managing the 

encountered risks
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Technical Approach

Start TRL & TPL at final targets?

End

Yes

Design

Design & risk review acceptable?

Yes

Build & integrate

Yes

Commission & test

No

Test readiness & risk review

Test readiness & risk review acceptable? No Yes

Lessons learned (Section 6)

Assess and plan design TRL & TPL (Sections 2 & 3) Begin risk management (Sections 4 & 5)

Design & risk review

Revise risk management plan

Development continuation?

No

Lessons learned (Section 6)

No

The risk management is 

imbedded in the technology

development, and is organized as 

a sequential process and 

displayed in a flowchart. Key 

elements in this process include: 

• Design,

• Design risk review,

• Building and integrating,

• Test readiness risk review,

• Commission and testing,

• Lessons learned, and

• Revision of risk management plan. 
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Technical Approach

Risk Management Activity As Function of Technology 

Readiness Levels

As learned from failures, early consideration of risk is essential.

Activity required at TRL level Risk Management Activity Section

1 2 3 4 5 6 7 8 9

x x x x x x x x x Risk management plan 4.1

x x x x x x x x x Project plan 4.2

x x x x x x x x x Risk register 4.3

x x x x x x x x x Design basis—requirements 4.4

x x x x x x Design basis—loads 4.5

x x x x x x Design description 4.6

x x x x x x Design analysis 4.7

x x x x x x x x x Define survivability targets and strategies 4.8

x x x x x Define reliability and maintainability targets and 

strategies

4.9

x x x x x x Failure mode effects analysis (FMEA) 4.10

x x x x x x x x x Technology qualification plan 4.11

x x x x x x x x x Lessons learned 4.12
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Accomplishments and Progress

• MHK risk framework and risk register are published 

• MHK Risk Management Framework is required by DOE in 

Funding Opportunity Announcement (FOA) proposals and 

project management (e.g. go/no-go decision points) and used 

in multiple projects: Used in awards from the two FY15 MHK FOAs, 

plus three (all) of the MHK TD awards from FY16 FOA. Thirteen total is a 

very good penetration, with considerable increase in success of this project. 

• Testimonial: “Littoral Power Systems is using the Risk Register to capture 

and track risks. . . . It has been an especially useful means to capture 

engineering decisions that mitigate technical risks. We have benefitted most 

from monthly risk review sessions and the added risk summary tab that puts 

the most urgent information in a single page view.” Kathie Leighton, 

Littoral Power Systems

• Positive feedback by individual stakeholders and users of the 

MHK Risk Management Framework
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Project Plan & Schedule

• Project started in January 2014

• Roll-out webinar was held on December 16, 2014

• Project completed, including NREL publication, in 

September 2015

• Project was completed on time and within budget

Risk Framework Risk Register 
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Project Budget

• Project was funded fully in FY13 ($300k)

• All funds (100%) were spent by the end of the project in 

September 2015

Budget History

FY2014 FY2015 FY2016

DOE Cost-Share DOE Cost-Share DOE Cost-Share

--- --- --- --- --- ---
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Research Integration & Collaboration

Partners, Subcontractors, and Collaborators

• DOE and DOE subcontractors 

• DNV-GL subject-matter expert reviewed product 

• Numerous MHK stakeholder engagements provided 

feedback and input

Communications and Technology Transfer

• Webinar with more than 50 attendees

• Published Framework document and Risk Register

• Engagement with users for feedback and improvement

• Document and Risk Register available at

http://www.nrel.gov/docs/FY15osti/63258.pdf

• Outcome to Date: More than 800 downloads since Sept. 2015. 
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Next Steps and Future Research

FY17 / Current Applications 

Known direct application by NREL in three MHK and Hydro 

projects: 

• Verdant Power—Tidal current technology

• Littoral Power Systems—Small hydro power

• Dehlsen / Ecomerit—Wave energy

Further application under FOA requirement to deliver risk 

register, encouraging use of risk framework

Proposed Future Research

Minor adjustments from experience through use cases and 

user feedback are planned in September FY17