Category: Finance and Asset Management
The due diligence process is a critical part of nearly all major project and portfolio transactions. During this process, it is important to thoroughly examine all major aspects of the project, including energy yield assumptions; commissioning and acceptance test procedures; and field installation methods. This can be a very in-depth process and a lengthy report from your consulting team can be an unwelcome surprise in what would otherwise be a smooth transaction.
In this presentation, the authors share best, and worst, practices found through many due diligence processes and provide an “open book” view of what Independent Engineers are looking for. Done well, this process is a well-understood and communicated process to protect project buyers and investors, rather than a game of moving targets and poorly framed requirements. In this talk, the presenter will focus on best practices in several areas:
• Installation: What are the most common, and serious, field installation errors and how can they be caught and dealt with ahead of time?
• Energy yield assessments (EYAs): What are best practices in key assumptions and how are EYAs accounting for new technologies, like bifacial modules?
• Warranties and O&M: New buyers want to understand what the project will cost to maintain. What practices support lower long-term O&M and are, therefore, more attractive to buyers?
• Commissioning and acceptance testing: Are there defined plans and procedures in place for project acceptance? Do these conform with industry standards and actually answer the right questions?
For these, and other, key categories the presenter will provide an overview of the due diligence process so that attendees understand how such reviews are completed and can get their projects ready to pass with flying colors.
Finally, as more projects include energy storage, the presenter will also present some best practices in energy storage project due diligence, including topics such as:
• Examining system capacity data and warranties
• The value of operational data
• Considerations for co-locating solar and storage
At the end of the presentation, attendees will better understand how to prepare solar and storage projects for sale to discerning buyers and will be able to address a variety of technical challenges before beginning the transaction process, resulting in better sale prices and much less interesting diligence reports.
Shawn Shaw– Head, Solar and Energy Storage, Natural Power