Step 4: Project Implementation; Intro to Step 5: Project Operation & Maintenance

1. Step 4: Project Implementation; Intro to Step 5: Project Operation & Maintenance Construction, Interconnection, and Commissioning Long-term Care of the Project

2. 4 Implementation 5Operations & Maintenance 2 Options 4 Implementation 3 Refinement 1 Potential

3. Step 4: Implementation • Purpose: Realize physical construction of project • Tasks: • Finalize preconstruction tasks • Realizeconstruction and equipment installation • Realizeinterconnection • Realize project commissioning leading to commercial operations • Output: Completed project (operation)

4. Step 4: Implementation • Pre-construction • Project kickoff • Design and construction documents, plans/schedules, submittals • Construction of project • Contract oversight/quality control • Change control • Commissioning • Testing and verification • Interconnection verification (utility) Variable effort relative to project scale

5. 1. Pre-construction • Checklists for schedules and each activity based on contract and project documents • Kickoff meeting • Utility interconnection process and agreement • Design (often in stages) and design approvals • Other possible plans: • Utility • Construction • Management • QC • Commissioning • Environmental Protection • Security

6. 2. Construction of Project • Project developer orders equipment and begins construction or installation • Construction manager coordinates work of various trades • Close coordination with tenants if site is an occupied building • Frequent communication among all parties to minimize possible issues

7. 4. Interconnection and Commissioning • Project interconnected according to utility interconnection agreement and utility process • Plan may be standardized by developer and technology and may be refined per individual system design • Witnessing and/or third party independent commissioning may be stipulated • Commissioning • Physical inspection • Testing • Whole system performance testing

8. Step 4: Hypothetical – Outputs • Completed and operating project • New ownership organization completed (if needed) • Project Implementation Success • Project generating electricity • Project developed within budget Photo from Byers and Renier Construction, NREL 18221

9. Project Risk – Post Step 4 Sources: Adapted from Holland & Hart, RE Project Development & Finance & Infocast, Advanced RE Project Finance & Analysis *NOTE: Underlining signifies that the risk assessment outcome changes during the step at hand.

10. Project Development Process 5Operations & Maintenance 5Operations & Maintenance 2 Options 4 Implementation 3 Refinement 1 Potential

11. Step 5: Operations & Maintenance (O&M) • Purpose: To ensure ongoing, effective project operation, i.e. energy production • Operational Costs: • Equipment maintenance and replacement • Monitoring • Insurance • Labor • Extended warranty agreements • If leasing, lessor often manages maintenance • If PPA, vendor typically manages maintenance • * Esp. if owner – role of highest O&M risk Photo from Florida Solar Energy Center, NREL 14728

12. Post-Procurement: Project O&M • O&M agreements • Warranties • Monitoring and reporting system / services • Performance guarantees • Production guarantees • Buyout options