in the case of ee financing contingency financing can be a useful provision for capacity building as well as potential default risk guarantee provision instead of committing to a grant which may subsequently prove to have been unnecessary contingent financing recognises the potential need for support but draws on public resources only when justified later on the basis of actual rather than projected costs intrinsic risks such as failure in the systems or technologies are controlled external risks such as volatility of a given resource price can be hedged with appropriate riskmitigation instruments figure illustrates the differences in risk exposure of ee projects versus wind power projects wind is a useful comparison because although it is technology based it offers tangible assets eg physical structure as a security guarantee unlike energy efficiency in the case of wind technology such risk is characterised by the variability of storms and wind occurrence as well as the reduced output that can result from a damaged plant